BSL 212 Ch. 12 & 13 questions correctly answered to
pass (graded A+)
1. Consideration
Consideration is the bargained-for exchange of promises that is
gener- al rule
legally suflcient
2. Bargained-for
Cannot make a promise in exchange for past consideration
ex- change of
promise
specific rule
Consideration is considered legally suflcient when the
3. Legal sufficiency
promisor receives benefit or the promisee incurs detriment.
spe- cific rule
Consideration is not legally suf- ficient when it is an illusory
promise, a pre existing obligation, or in some cases, a
modification of a pre existing contract, or a settlement of debts.
4. illusory promises Illusory promises are not legally suflcient.
(words such as choose, may, or should make the promise
illegitimate)
5. Pre existing Consideration for completing pre existing obligations is not legally
obliga- tions sufl- cient.
6. Modification of Common Law - In the modification of a pre existing contract, new
pre existing consider- ation is needed unless unforeseen circumstances have
contracts occurred.
UCC - A modification in good faith accepted by buyer and seller is
legally suflcient
CISG - A mere agreement between both parties to modify a pre
existing contract is legally suflcient. (basically the same as UCC
good faith)
7. Settlement of debts Disputed debt - A payment in good faith by a debtor accepted by
the creditor
over a disputed debt will cancel the debt and is legally suflcient.
Undisputed debt - If an undisputed debt is settled before it is
due, it is legally suflcient and will settle. If the debt is settled on
1/
5
, BSL 212 Ch. 12 & 13 questions correctly answered to
pass (graded A+)
or after the day it is due, the creditors word for settling is not
binding, unless the settlement included additional
consideration.
8.
2/
5
pass (graded A+)
1. Consideration
Consideration is the bargained-for exchange of promises that is
gener- al rule
legally suflcient
2. Bargained-for
Cannot make a promise in exchange for past consideration
ex- change of
promise
specific rule
Consideration is considered legally suflcient when the
3. Legal sufficiency
promisor receives benefit or the promisee incurs detriment.
spe- cific rule
Consideration is not legally suf- ficient when it is an illusory
promise, a pre existing obligation, or in some cases, a
modification of a pre existing contract, or a settlement of debts.
4. illusory promises Illusory promises are not legally suflcient.
(words such as choose, may, or should make the promise
illegitimate)
5. Pre existing Consideration for completing pre existing obligations is not legally
obliga- tions sufl- cient.
6. Modification of Common Law - In the modification of a pre existing contract, new
pre existing consider- ation is needed unless unforeseen circumstances have
contracts occurred.
UCC - A modification in good faith accepted by buyer and seller is
legally suflcient
CISG - A mere agreement between both parties to modify a pre
existing contract is legally suflcient. (basically the same as UCC
good faith)
7. Settlement of debts Disputed debt - A payment in good faith by a debtor accepted by
the creditor
over a disputed debt will cancel the debt and is legally suflcient.
Undisputed debt - If an undisputed debt is settled before it is
due, it is legally suflcient and will settle. If the debt is settled on
1/
5
, BSL 212 Ch. 12 & 13 questions correctly answered to
pass (graded A+)
or after the day it is due, the creditors word for settling is not
binding, unless the settlement included additional
consideration.
8.
2/
5
