Question 1

Which of the following is true for applying promissory estoppels to a contract?

Accepted Answer

A) Both parties must suffer legal detriment. 
B) Injustice would be caused if the promise were not enforced. 
C) They can be applied for illusory promise contracts. 
D) They can be applied for gift promise contracts. 
A) Both parties must suffer legal detriment. 
B) Injustice would be caused if the promise were not enforced. 
C) They can be applied for illusory promise contracts. 
D) They can be applied for gift promise contracts.

Question 2

An accord is enforceable even though no new consideration is given.

Accepted Answer

A) True 
 B)False

Question 3

What is accord and satisfaction in contractual terms?

Accepted Answer

In some situations, one of the parties t

Question 4

A contract in which a seller agrees to sell all of its production to a single buyer is known as a(n)________.

Accepted Answer

A) requirements contract 
B) output contract 
C) best-efforts contract 
D) option contract 
A) requirements contract 
B) output contract 
C) best-efforts contract 
D) option contract

Question 5

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away.Sharon agrees to do so, provided she has the time for it.What kind of contract do Mary and Sharon have?

Accepted Answer

A) preexisting duty 
B) past consideration 
C) illegal consideration 
D) illusory promise 
A) preexisting duty 
B) past consideration 
C) illegal consideration 
D) illusory promise

Question 6

Preexisting duty promise is unenforceable because of the introduction of a new consideration.

Accepted Answer

A) True 
 B)False

Question 7

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.What would this contract be an example of?

Accepted Answer

A) requirements contract 
B) output contract 
C) option contract 
D) yield contract 
A) requirements contract 
B) output contract 
C) option contract 
D) yield contract

Question 8

A promise is something of legal value given in exchange of a consideration.

Accepted Answer

A) True 
 B)False

Question 9

If the accord is not satisfied, the other party can sue to enforce the accord.

Accepted Answer

A) True 
 B)False

Question 10

Illusory promises are enforceable if one of the parties has performed their contractual obligation.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 would have made the contract between Corey and Tanner enforceable?

Accepted Answer

A) if Tanner had driven Corey to the airport in the past 
B) if Corey, upon arrival, had promised to pay gas money to Tanner whenever he could 
C) if the promise to pay gas money had been made before the trip was made 
D) if Tanner was contracted to drive Corey to the airport as a duty 
A) if Tanner had driven Corey to the airport in the past 
B) if Corey, upon arrival, had promised to pay gas money to Tanner whenever he could 
C) if the promise to pay gas money had been made before the trip was made 
D) if Tanner was contracted to drive Corey to the airport as a duty

Question 13

Why does an illusory contract lack consideration?

Accepted Answer

A) because the consideration promised is unlawful and therefore void 
B) because the person promises to perform an act or do something he is already under an obligation to do 
C) because one or both parties can choose not to perform their contractual obligations 
D) because the compensation paid is for work done in the past 
A) because the consideration promised is unlawful and therefore void 
B) because the person promises to perform an act or do something he is already under an obligation to do 
C) because one or both parties can choose not to perform their contractual obligations 
D) because the compensation paid is for work done in the past

Question 14

Which of the following can convert a gift promise into an enforceable promise?

Accepted Answer

A) if the promisee offers a consideration 
B) if the promisor offers a consideration 
C) if the promisee receives a legal benefit 
D) if the promisor suffers a legal detriment 
A) if the promisee offers a consideration 
B) if the promisor offers a consideration 
C) if the promisee receives a legal benefit 
D) if the promisor suffers a legal detriment

Question 15

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away.Sharon agrees to do so, provided she has the time for it.If Sharon fails to check the results and Mary wins the lottery, which of the following would be true for the contract between Mary and Sharon?

Accepted Answer

A) Mary can claim for breach of contract against Sharon. 
B) Sharon can claim for breach of contract against Mary. 
C) Neither Mary nor Sharon can claim breach of contract. 
D) Mary's promise is supported by consideration. 
A) Mary can claim for breach of contract against Sharon. 
B) Sharon can claim for breach of contract against Mary. 
C) Neither Mary nor Sharon can claim breach of contract. 
D) Mary's promise is supported by consideration.

Exam 11: Consideration and Promissory Estoppel

Which of the following is true for applying promissory estoppels to a contract?

An accord is enforceable even though no new consideration is given.

What is accord and satisfaction in contractual terms?

A contract in which a seller agrees to sell all of its production to a single buyer is known as a(n)________.

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away.Sharon agrees to do so, provided she has the time for it.What kind of contract do Mary and Sharon have?

Preexisting duty promise is unenforceable because of the introduction of a new consideration.

A promise is something of legal value given in exchange of a consideration.

If the accord is not satisfied, the other party can sue to enforce the accord.

Illusory promises are enforceable if one of the parties has performed their contractual obligation.

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

Why does an illusory contract lack consideration?

Which of the following can convert a gift promise into an enforceable promise?

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