Exam 12: Consideration

Marilyn contracted with Bravo Builders to build an addition to her house for $15,000.After digging the foundation,Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job.Assuming Marilyn agrees,which of the following is correct?

Otherwise illusory promises may be transformed by some courts into actual promises by implying an obligation of good faith and fair dealing.

The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire production.After signing the agreement,Abbot can increase its production from one shift to two shifts and Baker will have to buy all of the doubled production.

In a unilateral contract,a promise is exchanged for an act or forbearance to act.

In which of the following situations will a smaller sum be unable to discharge a larger debt?

An illusory promise has the form of a promise but imposes no real obligation.

The Restatement provides that a promise following the rendering of emergency services is binding even if not supported by consideration if necessary to prevent injustice.

Doug obtains an exclusive franchise to sell widgets for the Acme Widget Company.The exclusive franchise covers the entire State of Wisconsin for a period of three years.In this case:

Ron owes Matt an unsecured debt of $3,000.Ron has a discharge of all his unsecured debts by a bankruptcy court.Can the contract between Matt and Ron be reinstated?

Delany owes Carl a past-due undisputed debt of $500.Delany sees Carl in a bar and pays him $400.Carl then says to Delany,"Forget about the other $100 you owe me.I'm glad to get the $400." Carl's promise to discharge the remainder of the debt is binding.

Consideration exchanged for a promise does not require both legal detriment to the promisee and legal benefit to the promisor.

In most,if not all,cases where there is a legal detriment to the promisee,there is also a legal benefit to the promisor.

Define legal detriment.

Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain.

What transactions are enforceable even though they are not supported by consideration?

Dana gives care to Marnie's dog,Molly when Dana finds Molly ill on the side of the road.Marnie promises to reimburse Dana for the cost of treating Molly.Marnie's promise is binding,because there is a bargained-for-exchange.

In most states,a contract under seal is binding without consideration.

A unilateral contract may consist of a promise exchanged for an act or forbearance.

Which of the following is enforceable without consideration?