Exam 13: Consideration

Walter worked nights as a clerk in a fast-food store.On his last work shift,Walter's boss told him,"I'm really grateful for the year that you have worked here.I am going to give you a bonus of $1,000 in your last paycheck." When Walter got his last paycheck,there was no bonus.If Walter sues,the likely result will be

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000,the agreement is

Billy owes a liquidated debt of $3000 to Rayna,his personal weight trainer.Billy sends Rayna a check for $300 on which he has marked,"Payment in Full." If Rayna cashes the check she will not be able to successfully sue Billy for the remainder of the debt.

Shelby hired Evan to drill a well on her property for $3,000.They both thought the soil and subsoil were normal for the area,but after he started drilling,Evan found a layer of rock that required him to purchase a special drill and required an extra ten hours of work.Evan demanded an extra $1,000 to complete the job.Discuss whether Shelby is liable for the additional $1,000.

An agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as

An agreement between two parties to pay a lesser amount to settle an unliquidated debt is

Mary owes $3,800 on her credit card.She sends the credit card company a check for $800 with the notation "payment in full" on the check.If the credit card issuer cashes the check,

Upon graduating from college,Kathy announced her plans to enter law school the following fall and to marry Rick in December.Kathy's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out of school.He called Kathy and promised her $10,000 if she postponed her wedding until after completion of her first year of law school.Kathy agreed and postponed the wedding for a year.Kathy successfully completed her first year of law school,but soon thereafter,Kathy's father died.The administrator of her father's estate claimed she was not entitled to the $10,000 because there was no consideration for her father's promise.If Kathy sues the estate,she will probably be

Jamie is building a house on her lot.She invites Earnie of Earnie's Excavation to bid on the excavation job.Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky.Based on the assumption that the soil in Jamie's lot will be similar,he and Jamie agree that the excavation will cost $3,000.When Earnie starts digging,he learns there is solid rock under Jamie's lot.Earnie says it will cost an extra $2,500 for the excavation work.Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000.If Earnie sues,the most likely result would be

In January,Alex promised to pay Y-K Inc.$5,000 if it would refrain from filing suit against him on a breach of contract action.Y-K agreed and accepted a $5,000 check from Alex.Which of the following statements is correct?

Bernie owes an undisputed amount to Wilde's Heating & Air Conditioning.Which of the following is true?

In the historic case of Hamer v.Sidway,the nephew

An agreement to settle a debt for less than the sum claimed is referred to as?

If someone provides a service that he or she is already obligated to do,it is an example of

Hilda owes Lex $3,000,which is an undisputed amount.If she offers him her car in full settlement of the debt and he accepts,the agreement is binding and he can no longer claim she owes him anything on the original debt.

Pastor Tom was employed by the First Church for 40 years.On Pastor Tom's retirement there was no adequate pension plan.Two months after the retirement,a wealthy parishioner,in consideration for Pastor Tom's 40 years of faithful service and for being such a "sweet" man,promised to pay him $500 per month for the rest of his life.This promise probably is not enforceable.

Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1.The contract contained a provision which required all modifications to be written and signed by the company presidents.In early August,an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil;one in September and the second one in December.By September 30,when only 500 gallons had been delivered,NSB sued.The likely outcome of this lawsuit is:

A promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an

What phrase explains how a requirements contract can be valid?

An unliquidated debt can be described as