Exam 11: Consideration and Promissory Estoppel

A contract is considered to be supported by legal value if the promisor suffers a legal detriment.

Which of the following is true about an illegal consideration?

To be enforceable, a contract must be supported by consideration.

Hartman, who has worked for Aratize Inc.for 25 years, is retiring.Upon hearing the news of his retirement, the president of Aratize announces a bonus of $250, 000 to Hartman for his exceptional services toward Aratize thus far.But upon retiring, Hartman isn't paid the bonus.Hartman decides to sue the president and Aratize to recover the promised bonus.Which of the following is true of this case?

________ is an agreement whereby the parties agree to accept something different in satisfaction of the original contract.

What is contract consideration?

A contract is said to have legal value if ________.

Promissory estoppel is an equity doctrine that permits parties to enforce of a contract that includes consideration.

A contract is considered to be supported by legal value if the promisee receives a legal benefit.

Explain the preexisting duty principle in private sector contracts.

A new promise can include a past consideration for it to be enforceable.

For a gift promise to be enforceable, the promisee must offer a consideration.

An illusory promise is an example of a contract that lacks consideration.

Which of the following is true about output contracts?

A promissory estoppel is usually used to provide a remedy to a party who has relied on another party's promise.

Which of the following is true of a gift promise?

Once an accord has been reached, the original contract cannot be enforced under any circumstance.

A requirements contract is unenforceable due to lack of consideration.

Contracts based on illegal consideration are valid.

An accord is a compromise reached between two parties to settle a claim.