Exam 11: Consideration and Promissory Estoppel

Caterer agrees with Bride to cater Bride's wedding reception for $12 per plate.On the wedding day,Caterer calls Bride saying that some things have come up,and she will have to charge $16 a plate in order to do the catering.Bride agrees.Which is true?

Promises made out of affection generally lack consideration.

Under the law,written contracts are presumed to be supported by consideration.

A compromise agreement is referred to as an accord.

There is an existing contract calling for Seller to deliver 1,000 widgets to Buyer.Buyer says to Seller,"I would like to buy 100 additional units at the same price." Seller responds,"We promise to sell you the 100 extra units if we decide not to sell them to other customers." Regarding only the sale of the extra 100 units,which of the following is true?

Most courts hold that a liquidated debt cannot be compromised without new consideration.

An agreement where a party gives up the right to sue for injuries in exchange for the right to take part in an activity is insufficient to constitute consideration.

Shirley promised Jill that she would give her $50,000 if she won the lottery.Shirley later won the lottery and gave Jill $50,000.Shirley later changed her mind and demanded the money back.What happened?

A contract in which the seller agrees to sell all of its production to a single buyer is known as an "output contract."

A promise to deliver merchandise in the future:

John Dee,one of the richest people in the world,was walking down the street in New York City,where he saw a man in tattered clothes on a bench.He said to the man,"If you come around the corner with me to the clothing store,I'll buy you a nice suit." Having nothing else to do at the time,the man complied.However,when they got to the clothing store,Mr.Dee changed his mind.The man sued,alleging a unilateral contract had been formed: Mr.Dee had asked for an act,and the man had performed it.Discuss whether this was a unilateral contract or a gift.

Which of the following most likely constitutes legal consideration?

To meet the contractual requirement,consideration must be:

Mary promises to give her car to her friend.The friend sells his current car for a fairly low price because he is expecting to get a nearly new car from his rich and generous friend,Mary.Mary changes her mind and decides to keep the car.If the friend sues Mary,the court most likely will:

The requirement that consideration be bargained-for means that:

Sandra accepts an out of court settlement in exchange for dropping a lawsuit.The settlement agreement is supported by consideration in the form of forbearance of a legal right.

Lisa enters into a contract with Acme Groceries,Inc.,in which she promises to purchase groceries "as she determines appropriate in the future" from Acme,and Acme promises to sell such groceries to Lisa.This is an example of:

A party has given consideration for a contract if that party suffers a legal detriment even if the other party does not receive a benefit.

The imposition of a best efforts clause is generally viewed as sufficient consideration.

Jean had just received a promotion and substantial raise.Jean felt her raise would give her much more spending money,thus she planned to buy a new sports car.Jean felt she did not need to worry about receiving the best price for her old car,which she thought was worth about $3,000.She sold the car for $500.In fact,the car was worth $5,000,and Jean had not taken into account the additional taxes on her extra income.Jean also decided that for a single mother a sports car would not be very practical.Jean wanted to return the $500 to the purchaser and get her car back.Assuming that Jean will return the $500 to the buyer,Jean can: