Chapter 13

The value given in return for a promise (in a bilateral contract) or in return for a performance (in a unilateral contract). It is the inducement, price, or motive that causes a party to enter into an agreement.

The refraining from an action that one has a legal right to undertake.

This is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

Bargaining for something that has already taken place.

A debtor offers to pay, and a creditor accepts, a lesser amount than the creditor originally claimed was owed. It is the agreement (which must come first) then the performance (usually payment).

This is one whose amount has been ascertained, fixed, agreed on, settled, or exactly determined. Accord and satisfaction cannot take place if this has taken place.

This is one whose amount is not settled, fixed, agreed on, ascertained, or determined, and reasonable persons may differ over the amount owed. In these circumstances, acceptance of a lesser sum operates as satisfaction, or discharge, of the debt because there is valid consideration. The parties give up a legal right to contest the amount in dispute.

A contract in which one party forfeits the right to pursue a legal claim against the other party. It bars any further recovery beyond the terms stated in the release.

The parties simply substitute a contractual obligation for some other type of legal action based on a valid claim.

A person who has reasonably and substantially relied on the promise of another may be able to obtain some measure of recovery.

Prevented