Exam 13: Consideration

Under the Uniform Commercial Code,an agreement modifying a contract

Contracts in which one party agrees in good faith to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.

"I'll sell you my car if I decide to sell it" is an example of

The two basic elements of consideration are intention and agreement.

If Crosby and Dash are in disagreement as to the exact amount of money that Crosby owes Dash,then they may choose to form a new agreement at a set amount.If they both perform the new agreement,their conduct would be an example of

Marco agrees to sell Clowns R Us some balloons.The contract states that Clowns may buy as many balloons as it wishes.This agreement is

Bailey Co.and Spryt Bros.enter into a contract for the manufacture and sale of 400 lawn chairs.If both parties agree that a modification is necessary

The UCC requires consideration for agreements modifying contracts for the sale of goods.

A debt that is disputed because the parties disagree over its existence or amount is an unliquidated debt.

What is consideration and what are the two basic elements of consideration?

Zero,Inc.agreed to build Millie a storage building for $8,000.After beginning the project,Zero realized that it could not complete the job and make a profit.Zero demanded $9,500 to complete the building.Millie agreed to pay the $9,500.When the project was complete,Millie tendered $8,000 to Zero for the job.If Zero sues Millie for the remaining $1,500,

As it pertains to consideration,which of the following does NOT constitute value?

A promise to do (or not do)something in the future counts as consideration.

Denton agreed to build a cedar deck for the Thrashers for $7,000.After he began the work,the Thrashers asked him to add cedar flower boxes at one side.Denton replied he would,but it would cost an additional $600.The Thrashers would not be obligated to pay the additional sum because the original agreement already obligated Denton to complete the deck for $7,000.

Shirley Rhone suffered injuries when a truck struck the vehicle in which she was riding.State Auto Mutual Insurance Co.was the insurer involved and provided personal injury coverage.Shirley went to see Dr.Allen,a chiropractor who provided treatments 32 times over a 3-month period.Dr.Allen billed State Auto in three separate billings.After paying the first two billings in full,State Auto expressed concern about whether Dr.Allen's charges were excessive.State Auto hired Chiropractic Consultants,Inc.to evaluate Dr.Allen's billings.The consultants advised that Dr.Allen's billings were indeed excessive.State Auto then telephoned Dr.Allen and offered a partial payment to settle the account.After this conversation,State Auto issued and sent a check for $864 payable to Dr.Allen.On the face of the check,State Auto noted the total amount allocated to each claim and typed "settlement in full." On the reverse side it said,"The endorsement of this draft by the payee constitutes a clear release and full settlement of the claim or account shown on the other side." Upon receipt of the check,Dr.Allen cashed the check.He then sought payment of an additional $895.State Auto claims there was an accord and satisfaction with respect to the amount due for services rendered by Dr.Allen.What are the requirements of an accord and satisfaction? Were those requirements met in this case?

Frank's Furniture Company promised in a written agreement to purchase as much walnut wood "as it desires" from Forestry Products,Inc.If Frank's purchased walnut wood from another source and Forestry Products sued,what is the likely result?

Contracts generally do not require bargaining that leads to an exchange between the parties.

An illusory promise is valid consideration.

Section 2-306 of the UCC expressly disallows output contracts in the sale of goods.

Agreeing not to open a competing business could be consideration.