Question 1

The parties to a contract may modify the agreement with no additional consideration by simply substituting a new contract.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following are the two basic elements to consideration?

Accepted Answer

A) Bargained-for exchange and legal sufficiency 
B) Legal detriment and legal benefit 
C) Legal sufficiency and legal adequacy 
D) Promise and forbearance 
A) Bargained-for exchange and legal sufficiency 
B) Legal detriment and legal benefit 
C) Legal sufficiency and legal adequacy 
D) Promise and forbearance

Question 3

What transactions are enforceable even though they are not supported by consideration?

Accepted Answer

Such transactions would include: _promise_s_t_o_perfor_m_prio_r_unenforceabl_e_obligation_s_(promise_s_t_o_pa_y_debt_s_barred a.by t

Question 4

Which of the following will support a contract?

Accepted Answer

A) An illusory promise 
B) Past consideration 
C) Forbearance to do an act 
D) A pre-existing public obligation 
A) An illusory promise 
B) Past consideration 
C) Forbearance to do an act 
D) A pre-existing public obligation

Question 5

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

Accepted Answer

A) True 
 B)False

Question 6

If a promise is illusory, mutuality of obligation is lacking.

Accepted Answer

A) True 
 B)False

Question 7

If Sam agrees to sell to Thomas all of the tomatoes he wants at $25 a bushel, there is no contract because of a lack of consideration.

Accepted Answer

A) True 
 B)False

Question 8

The element of exchange is absent where a promise is given for an act that has already been done.

Accepted Answer

A) True 
 B)False

Question 9

Sandy's private secretary promises to keep the contents of a letter she typed secret if Sandy will give her the next day off with pay.If the secretary takes the day off, Sandy has to pay her for the day.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following requires consideration in order to be binding upon the parties?

Accepted Answer

A) A written promise by a merchant to keep an offer to buy goods open for 14 days 
B) Material modification of a sale of goods contract under Article 2 of the UCC 
C) Material alteration of a personal service contract 
D) Settlement of a disputed debt 
A) A written promise by a merchant to keep an offer to buy goods open for 14 days 
B) Material modification of a sale of goods contract under Article 2 of the UCC 
C) Material alteration of a personal service contract 
D) Settlement of a disputed debt

Question 11

Doug obtains an exclusive franchise to sell widgets for the Acme Widget Company.The exclusive franchise covers the entire State of Wisconsin for a period of three years.In this case:

Accepted Answer

A) Acme is obligated to use its best efforts to supply the goods only if this clause appears in the written franchise agreement. 
B) according to the UCC, unless otherwise agreed, Doug must use his best efforts to promote the sale of the widgets in his territory. 
C) under the UCC, such an agreement lacks consideration. 
D) consideration is not required because this is a moral obligation. 
A) Acme is obligated to use its best efforts to supply the goods only if this clause appears in the written franchise agreement. 
B) according to the UCC, unless otherwise agreed, Doug must use his best efforts to promote the sale of the widgets in his territory. 
C) under the UCC, such an agreement lacks consideration. 
D) consideration is not required because this is a moral obligation.

Question 12

Ron owes Matt an unsecured debt of $3,000.Ron has a discharge of all his unsecured debts by a bankruptcy court.
Can the contract between Matt and Ron be reinstated?

Accepted Answer

Yes, the contract can be reinstated if R

Question 13

Which of the following statements is most accurate concerning charitable subscription promises?

Accepted Answer

A) They are generally not enforceable. 
B) The courts equate them with gifts. 
C) They are generally enforceable if there is reliance by the charity. 
D) The Restatement uses a strict reliance requirement in relation to charitable subscriptions. 
A) They are generally not enforceable. 
B) The courts equate them with gifts. 
C) They are generally enforceable if there is reliance by the charity. 
D) The Restatement uses a strict reliance requirement in relation to charitable subscriptions.

Question 14

A modification of a preexisting contract occurs when the parties agree to change one or more of its terms and, under the common law, must be supported by mutual consideration to be enforceable.

Accepted Answer

A) True 
 B)False

Question 15

D owes C a past-due undisputed debt of $500.D sees C in a bar and pays him $400.C then says to D, "Forget about the other $100 you owe me.I'm glad to get the $400." C's promise to discharge the remainder of the debt is binding.

Accepted Answer

A) True 
 B)False

Question 16

A liquidated debt is an obligation the existence or amount of which is in dispute.

Accepted Answer

A) True 
 B)False

Question 17

Wayne helped Hank study all night for an important exam.After Hank got an "A" on the exam, he told Wayne, "I will give you $10 for helping me get a good grade." Wayne said, "Thanks, I'll take it." There is:

Accepted Answer

A) no contract because there is no mutual assent. 
B) no contract because there is no valid consideration. 
C) no contract because $10 is reasonably inadequate consideration. 
D) a contract with sufficient consideration. 
A) no contract because there is no mutual assent. 
B) no contract because there is no valid consideration. 
C) no contract because $10 is reasonably inadequate consideration. 
D) a contract with sufficient consideration.

Question 18

Contracts binding without consideration include promises to pay debts barred by a statute of limitations and debts discharged in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 19

Janet promises Eli $4,000 for one of his original paintings on the condition that she receive $1 million from her mother's will.Janet has made:

Accepted Answer

A) an illusory promise. 
B) a legally sufficient promise unless Janet knew at the time she made the promise that she could not inherit the $1 million. 
C) a conditional promise which is not sufficient to form consideration. 
D) a legally inadequate promise, and the courts will therefore not enforce it. 
A) an illusory promise. 
B) a legally sufficient promise unless Janet knew at the time she made the promise that she could not inherit the $1 million. 
C) a conditional promise which is not sufficient to form consideration. 
D) a legally inadequate promise, and the courts will therefore not enforce it.

Question 20

Which of the following gratuitous promises is/are enforceable by statute?

Accepted Answer

A) A good-faith contract modification in a contract for the sale of goods 
B) A written offer signed by a merchant to buy or sell goods that assures it will be kept open for one month 
C) A renunciation of a claim in a written waiver that is signed and delivered by the aggrieved party when the contract involves a sale of goods 
D) All of these are enforceable by statute. 
A) A good-faith contract modification in a contract for the sale of goods 
B) A written offer signed by a merchant to buy or sell goods that assures it will be kept open for one month 
C) A renunciation of a claim in a written waiver that is signed and delivered by the aggrieved party when the contract involves a sale of goods 
D) All of these are enforceable by statute.

Exam 12: Consideration

The parties to a contract may modify the agreement with no additional consideration by simply substituting a new contract.

Which of the following are the two basic elements to consideration?

What transactions are enforceable even though they are not supported by consideration?

Which of the following will support a contract?

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

If a promise is illusory, mutuality of obligation is lacking.

If Sam agrees to sell to Thomas all of the tomatoes he wants at $25 a bushel, there is no contract because of a lack of consideration.

The element of exchange is absent where a promise is given for an act that has already been done.

Sandy's private secretary promises to keep the contents of a letter she typed secret if Sandy will give her the next day off with pay.If the secretary takes the day off, Sandy has to pay her for the day.

Which of the following requires consideration in order to be binding upon the parties?

Doug obtains an exclusive franchise to sell widgets for the Acme Widget Company.The exclusive franchise covers the entire State of Wisconsin for a period of three years.In this case:

Ron owes Matt an unsecured debt of $3,000.Ron has a discharge of all his unsecured debts by a bankruptcy court. Can the contract between Matt and Ron be reinstated?

Which of the following statements is most accurate concerning charitable subscription promises?

A modification of a preexisting contract occurs when the parties agree to change one or more of its terms and, under the common law, must be supported by mutual consideration to be enforceable.

D owes C a past-due undisputed debt of $500.D sees C in a bar and pays him $400.C then says to D, "Forget about the other $100 you owe me.I'm glad to get the $400." C's promise to discharge the remainder of the debt is binding.

A liquidated debt is an obligation the existence or amount of which is in dispute.

Wayne helped Hank study all night for an important exam.After Hank got an "A" on the exam, he told Wayne, "I will give you $10 for helping me get a good grade." Wayne said, "Thanks, I'll take it." There is:

Contracts binding without consideration include promises to pay debts barred by a statute of limitations and debts discharged in bankruptcy.

Janet promises Eli $4,000 for one of his original paintings on the condition that she receive $1 million from her mother's will.Janet has made:

Which of the following gratuitous promises is/are enforceable by statute?

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.