Exam 13: Consideration

Apps Inc. promises to give stock options to Belden, a creative coder, for processes he has already designed. This promise is

If a party is already bound by contract to perform a certain duty, that duty can serve as consideration for a second contract.

Consideration refers to the objective determination of how much a bargain is worth.

Etan is indebted to Finance Credit Corporation for $100,000. Etan agrees to pay, and Finance Credit agrees to accept, a lesser amount than the creditor originally claimed was owed. This agreement is

A promise made in return for an act or event that has already taken place is fully enforceable.

Gwen is indebted to Home Loan Company for $75,000. Gwen agrees to pay, and Home Loan agrees to accept, a lesser amount than the lender originally claimed was owed. The performance of this agreement is

A promise is illusory when its performance depends solely on the discretion of the promisor.

An accord and satisfaction is an agreement in which one party gives up the right to pursue a legal claim against another party.

To be legally sufficient, consideration must be something of value in the eyes of the law.

Shockingly inadequate consideration can indicate fraud in a contract.

Normally, a court will evaluate the adequacy of consideration based solely on the comparative value of the things exchanged as part of agreement.

The elements of consideration, in a bilateral contract for a sale of goods, are the sale and the goods.

An option to cancel the performance of a contract before it begins does not make the promise illusory.

Onsite Restoration Inc. begins renovating houses for Property Company under a contract for a stated amount per house. After six months, Onsite demands an extra $20,000 per house, stating no reason for the extra $20,000, but asserting that it will stop work if it is not paid. The agreement is

Maria is the sheriff of Narez, Texas. Oscar robs a Narez gas station and a $500 reward is offered for his capture. When, later, Maria finds and arrests him, with respect to the reward, she can

Sports Bar and Tasty Tacos are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the restaurant will not tow the cars of Sports Bar's patrons who park in the restaurant's lot. The discount is legally sufficient consideration

Adequacy of consideration refers to

To enforce a contractual promise, there must be an exchange of consideration underlying the bargain.

Don slips and falls on a patch of ice on Ella's property. Ella offers Don $10,000 if he promises not to pursue any slip-and-fall legal claim against her. Don agrees, but later discovers that it will cost $40,000 in medical expenses for a latent injury. In Don's suit against Ella, Don will most likely recover

A release enables recovery beyond that specified in its terms.