Exam 12: Consideration

Stan purchased 400 pairs of gloves from Isaac at a contract price of $800.Fifty of the gloves were defective,and a dispute arose as to the amount due and owing under the contract.Stan refuses to pay the $800,and Isaac is threatening to sue.Which of the following is correct with regard to this transaction?

Consideration can be valid regardless of whether the parties intend an exchange.

Jerry received a bill for $300 from Johnson for a tune-up Johnson had performed on Jerry's car.Jerry called Johnson and told him,"The car runs no better now than before the tune-up.I am sending you $100 and no more." Johnson received the $100 check which was marked "paid in full" and cashed it.Jerry is still liable to Johnson for $200.

Define consideration.

Ken,a research chemist,has been promised a fellowship with a stipend of $10,000 to do research on synthetic fuel oil.Under the terms of the fellowship,Ken is free to use the money as he sees fit.Ken decides to build his own laboratory,so he will not have to rent one.He hires a carpenter who begins working on shelving and cabinets in the laboratory.Then Ken receives a telegram saying the fellowship has been canceled.No reason is given for the cancellation.If Ken sues,will he be able to collect the money from the foundation which promised the fellowship? Explain your answer using legal terminology.

In settling a liquidated debt,payment of a smaller amount before the due date would constitute consideration,but paying a lesser amount on the due date at an agreed-upon different place of payment would not be legally sufficient consideration.

Which of the following will support a contract?

Consideration has only one basic element,which is a bargained-for exchange.

Wayne helped Hank study all night for an important exam.After Hank got an "A" on the exam,he told Wayne,"I will give you $10 for helping me get a good grade." Wayne said,"Thanks,I'll take it." There is:

Mary agrees to sew Georgia's prom dress for $50 plus costs.Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60.When Mary finishes the dress (with ruffles),Georgia must pay:

According to the UCC,only a merchant can make a firm offer to a buyer.

Which of the following gratuitous promises is/are enforceable by statute?

Consideration does not require an actual benefit to both sides of an agreement.

A bank robbery has occurred,and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber.Several people are claiming to be entitled to the money.Which of them is eligible?

Which of the following would most likely be enforceable?

Payton promises to sell to Candice an automobile for $12,000,for which Candice promises $12,000.A bilateral contract exists.

A liquidated debt is an obligation the existence or amount of which is in dispute.

An agreement to sell the entire production of a particular plant to a particular purchaser is a requirements contract.

Andrew agrees to paint Betty's house for $500.Two days after he starts the job,he decides that $500 isn't enough money.He refuses to finish the job unless Betty agrees to pay him $100 more.What law applies to this fact situation?

The central idea behind consideration is that the parties have intentionally entered into a bargained-for exchange with one another and have given each other something in exchange for a promise or performance.