Question 1

Pablo promises to sell to Candice an automobile for $12,000, for which Candice promises $12,000.A bilateral contract exists.

Accepted Answer

A) True 
 B)False

Question 2

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber.Several people are claiming to be entitled to the money.Which of them is eligible?

Accepted Answer

A) The employees of the bank 
B) An on-duty sheriff's deputy in the county where the arrest occurred 
C) An off-duty deputy sheriff from a county other than the one where the arrest occurred 
D) None of these are eligible. 
A) The employees of the bank 
B) An on-duty sheriff's deputy in the county where the arrest occurred 
C) An off-duty deputy sheriff from a county other than the one where the arrest occurred 
D) None of these are eligible.

Question 3

Barbara, a wealthy widow, promises the pastor of her church that she will donate $20,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $80,000 mortgage.Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead.In this case:

Accepted Answer

A) the doctrine of promissory estoppel can be applied. 
B) the promise to pay $20,000 is a promise to give a gift and is therefore not enforceable. 
C) under the Restatement, Barbara's promise is enforceable only if it is in writing. 
D) Barbara's promise is not enforceable because the church did not give consideration. 
A) the doctrine of promissory estoppel can be applied. 
B) the promise to pay $20,000 is a promise to give a gift and is therefore not enforceable. 
C) under the Restatement, Barbara's promise is enforceable only if it is in writing. 
D) Barbara's promise is not enforceable because the church did not give consideration.

Question 4

A unilateral contract may consist of a promise exchanged for an act or forbearance.

Accepted Answer

A) True 
 B)False

Question 5

Contracts generally require adequacy of consideration where the consideration given by both parties is of fair value and equitable.

Accepted Answer

A) True 
 B)False

Question 6

Carlos ordered an aluminum storm door for $249.99.Before it was delivered, the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99.Carlos calls the store and demands the advertised price.If the store agrees:

Accepted Answer

A) Carlos must pay $179.99. 
B) Carlos must pay $249.99. 
C) there is no contract. 
D) there is a contract for the reasonable value of the door. 
A) Carlos must pay $179.99. 
B) Carlos must pay $249.99. 
C) there is no contract. 
D) there is a contract for the reasonable value of the door.

Question 7

In a bilateral contract, if one party is not bound, neither party is bound.

Accepted Answer

A) True 
 B)False

Question 8

Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road.After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog.Marnie's promise is binding, because there is a bargained-for-exchange.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would most likely be enforceable?

Accepted Answer

A) An agreement supported by past consideration 
B) A substitute agreement to settle an undisputed debt 
C) A debt agreed to seven years ago in a state where the statute of limitations is six years 
D) A promise following the rendering of emergency services that is not supported by new consideration 
A) An agreement supported by past consideration 
B) A substitute agreement to settle an undisputed debt 
C) A debt agreed to seven years ago in a state where the statute of limitations is six years 
D) A promise following the rendering of emergency services that is not supported by new consideration

Question 10

An agreement to sell the entire production of a particular plant to a particular purchaser is a requirements contract.

Accepted Answer

A) True 
 B)False

Question 11

Fran negligently drove her truck through Nick's fence, causing damage.If she promises to pay Nick $1,500 if he does not bring a lawsuit against her, Nick accepts and forms a unilateral contract by not filing suit.His forbearance is consideration.

Accepted Answer

A) True 
 B)False

Question 12

In a unilateral contract, a promise is exchanged for an act or forbearance to act.

Accepted Answer

A) True 
 B)False

Question 13

A conditional promise is a promise the performance of which depends upon the happening or nonhappening of an event not certain to occur.

Accepted Answer

A) True 
 B)False

Question 14

Marilyn contracted with Bravo Builders to build an addition to her house for $15,000.After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job.Assuming Marilyn agrees, which of the following is correct?

Accepted Answer

A) Marilyn will have to pay $20,000. 
B) This is a contract under seal which is enforceable. 
C) This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders. 
D) This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders. 
A) Marilyn will have to pay $20,000. 
B) This is a contract under seal which is enforceable. 
C) This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders. 
D) This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders.

Question 15

The Restatement provides that a promise following the rendering of emergency services is binding even if not supported by consideration if necessary to prevent injustice.

Accepted Answer

A) True 
 B)False

Question 16

Consideration:

Accepted Answer

A) must be given by the promisee to the promisor. 
B) must be adequate. 
C) may be given to the promisor or to some other person by the promisee or by some other person. 
D) need not be equal between the parties, but must be proportionate. 
A) must be given by the promisee to the promisor. 
B) must be adequate. 
C) may be given to the promisor or to some other person by the promisee or by some other person. 
D) need not be equal between the parties, but must be proportionate.

Question 17

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

Accepted Answer

A) an illusory promise. 
B) past consideration. 
C) the pre-existing duty rule. 
D) good consideration. 
A) an illusory promise. 
B) past consideration. 
C) the pre-existing duty rule. 
D) good consideration.

Question 18

Jason's mother would like him to go to college, so in June he enrolls at State University.He also quits his job and tells his mother his plans to continue taking classes.His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485.Which of the following is true regarding his mother's promise?

Accepted Answer

A) It is enforceable, because Jason returned to college. 
B) It is enforceable, because Jason is giving up the right to do something else. 
C) It is unenforceable, because it is a unilateral contract. 
D) It is unenforceable, because Jason had already enrolled in school and there is no consideration. 
A) It is enforceable, because Jason returned to college. 
B) It is enforceable, because Jason is giving up the right to do something else. 
C) It is unenforceable, because it is a unilateral contract. 
D) It is unenforceable, because Jason had already enrolled in school and there is no consideration.

Question 19

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is enforceable without consideration?

Accepted Answer

A) A new promise to pay a debt barred by the statute of limitations. 
B) An illusory promise. 
C) Under the common law, a promise made to satisfy a preexisting moral obligation. 
D) A promise by a father to pay someone for rendering emergency services to his injured son before the father had arrived at the accident scene. 
A) A new promise to pay a debt barred by the statute of limitations. 
B) An illusory promise. 
C) Under the common law, a promise made to satisfy a preexisting moral obligation. 
D) A promise by a father to pay someone for rendering emergency services to his injured son before the father had arrived at the accident scene.

Exam 12: Consideration

Pablo promises to sell to Candice an automobile for $12,000, for which Candice promises $12,000.A bilateral contract exists.

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber.Several people are claiming to be entitled to the money.Which of them is eligible?

A unilateral contract may consist of a promise exchanged for an act or forbearance.

Contracts generally require adequacy of consideration where the consideration given by both parties is of fair value and equitable.

Carlos ordered an aluminum storm door for $249.99.Before it was delivered, the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99.Carlos calls the store and demands the advertised price.If the store agrees:

In a bilateral contract, if one party is not bound, neither party is bound.

Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road.After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog.Marnie's promise is binding, because there is a bargained-for-exchange.

Which of the following would most likely be enforceable?

An agreement to sell the entire production of a particular plant to a particular purchaser is a requirements contract.

Fran negligently drove her truck through Nick's fence, causing damage.If she promises to pay Nick $1,500 if he does not bring a lawsuit against her, Nick accepts and forms a unilateral contract by not filing suit.His forbearance is consideration.

In a unilateral contract, a promise is exchanged for an act or forbearance to act.

A conditional promise is a promise the performance of which depends upon the happening or nonhappening of an event not certain to occur.

The Restatement provides that a promise following the rendering of emergency services is binding even if not supported by consideration if necessary to prevent injustice.

Consideration:

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Which of the following is enforceable without consideration?

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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