Exam 12: Consideration

Barbara,a wealthy widow,promises the pastor of her church that she will donate $20,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $80,000 mortgage.Other pledges are obtained to pay off the mortgage,but now Barbara has changed her mind and plans to take an around-the-world cruise instead.In this case:

Reilley wants to open a McHenry Roast Chicken franchise in her hometown of Manchester.Arden,a representative of McHenry,told Reilley,"If you will buy a lot and build a building in River City,we will give you a franchise." Reilley bought the lot and built the building as instructed,only to discover that McHenry had awarded the franchise to someone else.McHenry claims no liability to Reilley since there was no consideration.Which statement is most accurate?

Which of the following statements is most accurate concerning charitable subscription promises?

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Consideration:

The most common application of the doctrine of promissory estoppel is to charitable subscriptions,such as pledges to churches,memorials,college buildings,and hospitals.

Ava says to Donell,"If I decide to buy a tablet next month,I will buy it from you." This is an example of:

Is a promise to pay a pre-existing moral obligation enforceable? Explain.

In a bilateral contract,if one party is not bound,neither party is bound.

Contracts generally require adequacy of consideration where the consideration given by both parties is of fair value and equitable.

The Code has changed the common law rule regarding modification of a preexisting contract by providing that a contract for the sale of goods can be effectively modified by the parties without new consideration,provided they intend to do so and act in good faith.

Aunt Ellie promises her 21-year-old nephew,Robbie,that she will pay him $100 if he quits smoking for a month.If Robbie does,is there a binding contract?

The requirement of legally sufficient consideration:

A purchaser's agreement to buy from a particular seller all the materials of a particular kind he needs is a(n)____ contract.

Define a substituted contract and describe how it affects an agreement.

A conditional promise is a promise the performance of which depends upon the happening or nonhappening of an event not certain to occur.

In some states a promise under seal is binding without consideration.

Which of the following requires consideration in order to be binding upon the parties?

Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms.

Darla offers to pay Edward $6,000 for Edward's car,provided that Darla receives that much from her uncle's estate,which is currently being probated.She expects to know for sure how much she will receive within a week or so.In this case: