Consideration
Definition of Consideration
Something of legal value bargained for and exchanged in return for a promise
Forbearance and promises can serve as valid consideration
True
What is the difference between liquidated and unliquidated debt?
Liquidated debt is a fixed, undisputed amount, while unliquidated debt is uncertain.
Give one requirement of consideration
• Legal Value: Must be something the law recognizes as valuable
• Bargained-for Exchange: Must be the result of mutual negotiation
• Both parties must give consideration (not just one side)
• Past consideration is NOT valid consideration
• Pre-existing duty does NOT count as new consideration
Statute of limitations is the time before when you can not bring up a lawsuit yet.
False, it is the time limit on when you can bring up a lawsuit
What is the composition of Creditors or debt consolidation?
An agreement between the debtor and multiple creditors to accept less than full payment in exchange for releasing the debtor from the remainder.
What is the difference between consideration and a gift?
Consideration is when both parties receive something of value; a gift is a transfer of ownership with nothing in return.
Forbearance is promising to refrain from doing something you have a legal right to do
True
What is promissory estoppel?
It is an exception to consideration requirement to prevent injustice even without consideration.