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Gabe gives Mary a note that states, “I promise to pay you $200,000,” as a gift, and Mary accepts the note.  No consideration is given in return for Gabe’s promise (because it is a gift) yet a court will enforce the promise.  

Laura offers to sell her home to Jake for $270,000.  Jake says, “Your price is too high.  I’ll offer to purchase it for $250,000.”  Jake’s response is called a ______________________ because it rejects Laura’s offer to sell at $270,000.   Jake’s _______________ actually creates a new offer to buy at $250,000.

A writing that states, “I promise to pay you $1,000 if the Mets win the World Series,” is not a contract because it comes with a condition.

The rights of a “Holder in Due Course,” include the right to: __________________________.

Determining whether a contract has been performed, courts look to the intent of the parties using the objective theory of contracts.  

A debtor is not protected in bankruptcy for fraud. An example of fraud is transferring property to a relative where the debtor still runs and uses it.

A signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand. For example, a document stating, “On demand I promise to pay to the order of “Paul Payee”  FIFTY THOUSAND  DOLLARS,” is an example of ______________________.

Pete cannot afford his Maserati Grecale payments anymore, so he asks his bitcoin-rich nephew Flavio to take over the payments. Flavio has four exotic cars and would happily add it to his collection. In order to take over Pete’s payments, he needs to have the bank ________________ his agreement so Pete will no longer be responsible under the contract.

When a writing is imperfect, sometimes a party is permitted to rewrite to reflect their true intentions.  For example, where a contract recites the wrong parcel of land to be sold, the court may permit the parties to reform the contract by adding the proper parcel. This is the equitable remedy of ____________________.

Linda contracts to sing at John’s nightclub for $10,000, but later cancels the contract and therefore is in breach.  John is able to find another singer at $13,000.  He can sue Linda to recover the other $3,000.  John can also recover the costs to find another singer, called incidental damages.