Exam 11: Consideration and Promissory Estoppel

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Corey desperately needs to get to the airport and decides to take his neighbor Tanner's help.Tanner agrees to help and drives Corey to the airport.Upon arrival at the airport, Corey promises to pay Tanner $25 towards gas money.Which of the following contracts does Corey's promise fall under?

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Question 1

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Give an account of promissory estoppels.

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Question 2

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Promissory estoppels are equity doctrines that permit a court to order enforcement of a contract that lacks consideration.Promissory estoppel is applied to avoid injustice.It is usually used to provide a remedy to a party who has relied on another party's promise, but that party has withdrawn its promise and is not subject to a breach of contract action because consideration is lacking.The doctrine of promissory estoppel prevents the promisor from revoking his or her promise based on lack of consideration.Therefore, the person who has detrimentally relied on the promise for performance may sue the promisor for performance or other remedy the court feels is fair to award in the circumstances.

Which of the following is true for a buyer with an output contract?

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Question 3

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James had a contract with Frasier to fix Frasier's plumbing issue at his home.The contract was made to fix the issue for $3, 000.But after the work was completed Frasier refused to pay anything unless James agreed to accept $2, 500. -To avoid legal nuisance, Frasier decides to compromise with James.He asks James to fix a tap in the barn for $250, and modify the current contract to include the tap in the barn.James agrees to this, and does as asked, while Frasier remade the contract.Which of the following would this kind of settlement be referred to as?

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Question 4

________ is a promise to refrain from doing an unlawful act, and therefore is a promise that will not support a contract.

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Question 5

Illusory promises require both parties to perform their contractual obligations.

(True/False)

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Question 6

What is a best-efforts contract?

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Question 7

AtlasNow Construction Company, a general contractor, requests bids from subcontractors for work to be done on a hospital building that AtlasNow plans to submit a bid to build.Catapipes Plumbing Company, a plumbing subcontractor, submits the lowest bid for the plumbing work, and AtlasNow incorporates Catapipes's low bid in its own bid for the general contract.Based on all of the subcontractors' bids, AtlasNow submits the lowest overall bid to build the hospital and is awarded the contract. -Why does Catapipes's consideration have legal value?

(Multiple Choice)

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Question 8

Which of the following is true about a promissory estoppel?

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Question 9

Which of the following lacks consideration?

(Multiple Choice)

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Question 10

A gift promise requires the promisee to provide consideration.

(True/False)

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Question 11

Toughones, a car part manufacturer, entered into a contract to license computer software from a Vizera Inc.for $250, 000.This software is to be used to keep track of inventory, accounts receivable, and other financial data.After the software was installed, the computer system worked but it had a few glitches.Toughones refused to pay the full amount in the contract.To settle the dispute, the parties agree that $180, 000 is to be paid as full and final payment for the software.Toughones paid the $180, 000 as agreed.What kind of agreement did Toughones and Vizera reach in the end?

(Multiple Choice)

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Question 12

Which of the following is true for an accord?

(Multiple Choice)

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Question 13

Contracts falling under past consideration are unenforceable due to a preexisting consideration.

(True/False)

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Question 14

A contract into which both parties enter but in which one or both of the parties can choose not to perform their contractual obligations is known as ________.

(Multiple Choice)

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Question 15

With regards to unenforceable contracts, an extortion call in which a man agrees to pay money in return for his family's safety would be considered as a(n)________.

(Multiple Choice)

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Question 16

To meet contractual legality, considerations must be ________.

(Multiple Choice)

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Question 17

If the accord is performed, it is called a satisfaction.

(True/False)

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Question 18

Under which of the following conditions is a contract said to have legal value?

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Question 19

James had a contract with Frasier to fix Frasier's plumbing issue at his home.The contract was made to fix the issue for $3, 000.But after the work was completed Frasier refused to pay anything unless James agreed to accept $2, 500. -James's attempt to make a new contract is void because it lacks consideration under the ________ concept.

(Multiple Choice)

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Question 20

Showing 1 - 20 of 75

Exam 11: Consideration and Promissory Estoppel

Corey desperately needs to get to the airport and decides to take his neighbor Tanner's help.Tanner agrees to help and drives Corey to the airport.Upon arrival at the airport, Corey promises to pay Tanner $25 towards gas money.Which of the following contracts does Corey's promise fall under?

Give an account of promissory estoppels.

Which of the following is true for a buyer with an output contract?

________ is a promise to refrain from doing an unlawful act, and therefore is a promise that will not support a contract.

Illusory promises require both parties to perform their contractual obligations.

What is a best-efforts contract?

Which of the following is true about a promissory estoppel?

Which of the following lacks consideration?

A gift promise requires the promisee to provide consideration.

Which of the following is true for an accord?

Contracts falling under past consideration are unenforceable due to a preexisting consideration.

A contract into which both parties enter but in which one or both of the parties can choose not to perform their contractual obligations is known as ________.

With regards to unenforceable contracts, an extortion call in which a man agrees to pay money in return for his family's safety would be considered as a(n)________.

To meet contractual legality, considerations must be ________.

If the accord is performed, it is called a satisfaction.

Under which of the following conditions is a contract said to have legal value?

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