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(Q1) Consideration & Illegal Agreements pg 12-13

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Total cards: 13•Content version: v4•Public deck•Updated: 8/1/2026

Card preview (13)

#1
Front (Question)

Consideration

Back (Answer)

• Whatever a promisor (offeror) gives or promises to give to another in exchange for that other person’s promise or action to give to them. • Both parties must give consideration but does not have to be equal. Must be something of value

#2
Front (Question)

Forbearance

Back (Answer)

promising not to do something. Can act as consideration if you had a legal right to do it.

#3
Front (Question)

Partial payment of a past due obligation; can discharge the entire debt if

Back (Answer)

A) the lesser sum is accepted on a disputed amount b) a receipt marked paid in full is given to debtor c) there is a composition of creditors agreement

#4
Front (Question)

Exceptions when consideration is not required by both parties

Back (Answer)

a) charitable subscriptions, pledges, etc. b) promissory estoppel

#5
Front (Question)

Divisible Contracts

Back (Answer)

Many parts that can be preformed separately

#6
Front (Question)

Indivisible

Back (Answer)

All parts are performed as one

#7
Front (Question)

What contracts are illegal by statute?

Back (Answer)

a) Gambling Contracts b) Sunday Contracts c) Usury d) Unlicensed Operators e)Sale of Prohibited Articles f) Restraint of Trade

#8
Front (Question)

Usury

Back (Answer)

charging an excessive rate of interest for the loaning of money

#9
Front (Question)

Legal rate

Back (Answer)

by state statute

#10
Front (Question)

Contract Rate

Back (Answer)

Agreed to by parties but regulated by statute

#11
Front (Question)

Restraint of Trade

Back (Answer)

Price fixing, dividing trade territories, and lesson competition

#12
Front (Question)

Contracts not to compete

Back (Answer)

can be legal if reasonable re: time and area

#13
Front (Question)

Unlicensed Operators

Back (Answer)

illegal to operate certain businesses without a license; contracts made under unlicensed operators are void