Consideration – the value (such as cash) given in return for a promise or performance

Promissory Estoppel – when the promisor is prevented from asserting the lack of consideration as a defense (promise still enforced)

Chapter 16

Statute of Frauds – stipulates what type of contracts must be in writing

Collateral promise – made by a third party to assume debts of a primary party to a contract if that party does not perform, must be in writing
Prenuptial agreements – made before marriage to define each partner’s ownership right in the other’s property, must be in writing
Parol evidence rule – if a court finds that a written contract represents the complete and final statements of the parties’ agreement, it will not allow either party to present “parol evidence,” testimony between the parties that is not contained in the contract itself
Integrated contract – written contract intended to be complete and final in terms of agreement, extraneous evidence excluded
Chapter 17
Privity of contract – only the parties that entered into the agreement have rights and liabilities under the contract
Assignment – transfer of contractual rights to a third party, Assignor assigns right, Assignee receives rights
Delegation – transfer of contractual duties to a third party, Obligee is owed duties, Obligor/Delegator obligated to perform the duty can delegate to Delegatee
Alienation – assignments of rights in real estate (transfer of land ownership) often cannot be prohibited because it is contrary to public policy in most states, “restraints against alienation”
Third part beneficiary – original parties agree that contract should directly benefit a third person
Intended beneficiary – third part intended to benefit has legal rights and can sue promisor directly for breach of contract
Incidental beneficiary – third person receives benefit even though their