Exam 11: Consideration and Promissory Estoppel

A promise based on past consideration is not enforceable.

A(n)________ is a contract in which a buyer agrees to purchase all of its requirements for an item from one seller.

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. -If Catapipes Plumbing plans to withdraw its bid, what legal doctrine can help AtlasNow from being meted out injustice due to lack of consideration?

Poweroxi Inc.produces rocket propellant fuel that is used in space shuttles.NASA is an agency that requires rocket propellant fuel to send its rockets to space.NASA enters into a contract with Poweroxi Inc.to purchase all of the propellant fuel it will need this year from Poweroxi.Which of the following would constitute a breach in contract?

Promissory estoppels can be invoked for cases that include consideration.

Output contracts serve the legitimate business purposes of assuring the seller of a purchaser for all its output.

Forbearance of a legal right can be provided as consideration.

A gift promise is enforceable if the promisor withdraws from his promise.

A completed gift promise cannot be rescinded for lack of consideration.

Considerations can only be monetary or economic in nature.

A consideration need not be of legal value to be enforceable.

Imposition of the best-efforts duty provides sufficient consideration to make a contract enforceable.

________ is an equity doctrine that permits a court to order enforcement of a contract that lacks consideration.

Dean Campenella is a detective with the California state police.During the investigation of a missing child, Campenella found new clues that led to the capture of a serial killer involved in another case.Since Campenella was not involved in the serial killer case, and found the clues while investigating another case, Campenella demanded a special reward from the state police department for helping catch the killer.But his demand was declined citing lack of consideration.Campenella's demand lacks consideration under which of the following?

If a contract that was lacking in consideration is performed by the parties, the parties cannot subsequently assert lack of consideration to undo the performed contract.

Mark, who recently won a lottery, tells Sean that he will split his lottery winnings with him, if Sean can arrange an interview between Sean's boss and Mark.Sean talks to his boss and the meeting is arranged.But when Sean goes to collect half of Mark's lottery winnings, Mark refuses to pay.What is the act of consideration in this scenario?

In an output contract, the buyer agrees to make all of its purchase from one buyer.

A promise lacks consideration if a person promises to perform an act or do something he is already under an obligation to do.This is called a(n)________.

The preexisting rule allows for midstream changes to be enforceable in a contract.

An out-of-court settlement in exchange for dropping a lawsuit is an example of consideration.