| A | B |
|---|
| composition of creditors | Agreement by all creditors to accept something less than the total amount of their claims in full satisfaction of a debtor's obligations |
| nominal consideration | Token consideration which bears no relation to the real value of the contract |
| consideration | promise or action of one person in exchange for the promise or the action of another person |
| forbearance | refraining from doing what one has the right to do |
| gift | voluntary transfer of ownership of property without consideration |
| legal value | change in the legal position of a party as a result of the contract |
| past consideration | act that has already been performed and thus cannot be consideration for a promise in the present |
| promissory estoppel | enforcement of a promise to avoid injustice, even though no consideration is given for it |
| promisor | person who makes a promise |
| promisee | person to whom a promise is made |
| firm offer | merchant's binding written promise to keep open an offer to buy or sell goods |
| statute of limitations | the time limit for bring a lawsuit |
| option contract | underlying contract to keep an offer open |
| output contract | when the buyer agrees to purchase all of a particular production line |
| requirements contract | when the supplier agrees to provide all of the product for a certain company |
| liquidated debt | where the parties agree that the debt exists and on the amount of the debt |
| accord and satisfaction | where both parties agree to change the orginial agreement and perform based on the changes |
| donor | a person who gives a gift |
| donee | a person who receives a gift |
