Exam 13: Consideration

Holes Inc. begins digging a foundation at a construction site for Investment Company under a contract for a certain price. After six months, Holes demands a higher price because of extraordinary difficulties that were totally unforeseen at the time the contract was formed. An agreement to pay the higher price is

To apply the doctrine of promissory estoppel in a given situation, there must exist no clear or definite promise.

Cloud Storage Inc. promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is

With respect to consideration, a bargained-for exchange refers to the location, such as a stock exchange, where the contracting parties negotiated their deal.

Bistro Caterers contracts with Corporate Towers to cater the firm's business meetings. Later, the contract between Bistro and Corporate is completely rescinded. Even later, Bistro offers to make a new deal. Corporate is willing to deal, but for a new price. Bistro and Corporate

Ros contracts with Spicy Pizza to deliver its products. After the deal has been partially performed, both parties inform each other that they would like to cancel the contract. Ros and Spicy may rescind

A preexisting duty may be imposed by law.

Si promises to pay his personal assistant Tery $50,000 in consideration of the services she provided over the years. Si never makes the payment. Si's promise is

Forfeiting a right to sue to recover further damages can constitute consideration.

Sol offers Tiff $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely

When the doctrine of promissory estoppel is applied, the promisor is estopped, or barred, from performing the promise.

The performance of an action that one is not otherwise obligated to undertake is not legally sufficient consideration.