Consideration & Contract Modifications
This term refers to a promise exchanged for another promise or performance, creating an enforceable contract.
What is consideration?
This type of monetary remedy compensates a party for the benefit they expected from a contract.
What is expectation interest?
According to this rule, an acceptance must match the terms of the offer exactly, or it will be treated as a counteroffer.
What is the mirror image rule?
Under this doctrine, a court may enforce an agreement even if formalities are missing, provided it would prevent injustice.
What is promissory estoppel?
A defense allowing a minor to void a contract they entered before reaching the age of majority.
What is infancy (or minority)?
A past act or benefit that cannot serve as valid consideration for a new promise.
What is past consideration?
This remedy restores the non-breaching party to the position they would have been in had the contract never existed.
What is reliance interest?
This occurs when a party shows intent to accept by beginning to perform rather than by explicit communication.
What is acceptance by performance?
This doctrine allows a contract to be voided if a party agreed due to threats or coercive pressure.
What is duress?
An unenforceable promise where the promisor retains complete discretion over performance, making it non-binding.
What is an illusory promise?
This doctrine allows a contract modification without new consideration if a promise induces substantial reliance.
A remedy that requires a party to return any benefits received from the other party, typically when a contract is voided.
What is restitution?
An offer that cannot be revoked once the offeree begins substantial performance.
What is a unilateral contract?
The concept that every contract carries an implied obligation for parties to act honestly and not destroy the right to receive benefits.
What is the duty of good faith and fair dealing?
This defense may apply if one party lacks the mental capacity to understand the nature and consequences of the contract.
What is mental incapacity?
When both parties change obligations in response to unforeseen circumstances, this doctrine may apply to enforce the modified terms.
What is the doctrine of unforeseen difficulties?
Unlike tort law, contract law generally does not award this type of damages because it aims to compensate, not punish.
What are punitive damages?
When a party's silence implies acceptance because of prior dealings or benefit taken, this type of acceptance is recognized.
What is acceptance by silence?
Contracts involving the sale of goods valued over $500 must meet this formal requirement, under UCC rules.
What is the Statute of Frauds?
A defense available when one party to a contract was mistaken about a fundamental aspect, and the other party knew or should have known.
What is unilateral mistake?
When a promise is made as recognition of a benefit already received, this doctrine may enforce the promise if justice requires and the benefit wasn’t intended as a gift.
What is the moral obligation doctrine?
Under this remedy, a court may order the breaching party to fulfill a promise involving unique goods or assets, often where monetary damages are inadequate.
What is specific performance?
In contract law, this ‘rule’ states that an offeree’s acceptance by dispatch creates a binding contract, even if the offeror hasn’t received it yet.
What is the mailbox rule?
This doctrine applies when a party relies on a statement or promise in pre-contract negotiations, leading to enforceable obligations to avoid injustice, even without a formal contract.
What is reliance or pre-contractual reliance?
This defense applies if both parties made a mistaken assumption about a basic fact central to the contract, which fundamentally alters the nature of their agreement.
What is mutual mistake?