Question 1

There are certain transactions that require consideration in order to be enforceable. These include:

Accepted Answer

A)  promises to pay a debt barred by the statute of limitations. 
B)  a promise to pay a debt that has been discharged in bankruptcy if certain requirements are met. 
C)  a new promise to perform a voidable obligation that has not previously been avoided. 
D)  a unilateral contract. 
A)  promises to pay a debt barred by the statute of limitations. 
B)  a promise to pay a debt that has been discharged in bankruptcy if certain requirements are met. 
C)  a new promise to perform a voidable obligation that has not previously been avoided. 
D)  a unilateral contract.

Question 2

Is a promise to pay a pre-existing moral obligation enforceable? Explain.

Accepted Answer

Under the common law and in most states,

Question 3

Discuss the concept of adequacy of consideration.

Accepted Answer

Adequacy of consideration is not require

Question 4

Jerry received a bill for $300 from Johnson for a tune-up Johnson had performed on Jerry's car. Jerry called Johnson and told him, "The car runs no better now than before the tune-up. I am sending you $100 and no more." Johnson received the $100 check which was marked "paid in full" and cashed it. Jerry is still liable to Johnson for $200.

Accepted Answer

A) True 
 B)False

Question 5

The two basic elements to consideration are legal adequacy and a bargained-for exchange.

Accepted Answer

A) True 
 B)False

Question 6

Obligations contingent upon a stated event are known as conditional promises.

Accepted Answer

A) True 
 B)False

Question 7

A gratuitous promise is a promise made without consideration.

Accepted Answer

A) True 
 B)False

Question 8

Although such a gratuitous promise would be otherwise unenforceable, under the UCC, any claim arising out of an alleged breach of contract can be discharged by a written renunciation signed and delivered by the aggrieved party.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated. She expects to know for sure how much she will receive within a week or so. If Edward agrees:

Accepted Answer

A)  there is an illusory contract, because Darla is not certain she will receive the money. 
B)  there is no consideration present in this example. 
C)  the consideration from Darla to Edward is the promise of $6,000 subject to a condition. 
D)  this is an option contract and Edward must wait at least a week for Darla's answer. 
A)  there is an illusory contract, because Darla is not certain she will receive the money. 
B)  there is no consideration present in this example. 
C)  the consideration from Darla to Edward is the promise of $6,000 subject to a condition. 
D)  this is an option contract and Edward must wait at least a week for Darla's answer.

Question 11

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 12

In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor.

Accepted Answer

A) True 
 B)False

Question 13

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will. Jan's promise:

Accepted Answer

A)  is illusory. 
B)  is legally sufficient unless Jan knows she cannot inherit the $1 million. 
C)  is a conditional promise, which is not sufficient to form consideration. 
D)  is legally inadequate, and the courts will therefore not enforce it. 
A)  is illusory. 
B)  is legally sufficient unless Jan knows she cannot inherit the $1 million. 
C)  is a conditional promise, which is not sufficient to form consideration. 
D)  is legally inadequate, and the courts will therefore not enforce it.

Question 14

Breton owes Parkerson $750, which is due on June 1. Discuss the sufficiency of consideration if Breton offers Parkerson:
(a) $600 in full settlement on June 1 if the debt is undisputed;
(b) $600 in full settlement on April 10 if the debt is undisputed; and
(c) $500 on June 1 to settle the debt if the amount of the debt is validly disputed.

Accepted Answer

The sufficiency of consideration is affe

Question 15

Andy's private secretary promises not to disclose the contents of an email she typed if Andy will give her the next day off with pay. If the secretary takes the day off, Andy does not have to pay her for the day.

Accepted Answer

A) True 
 B)False

Question 16

Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract?

Accepted Answer

A)  No, because Robbie gave no benefit to Aunt Ellie. 
B)  No, because Robbie did not suffer any detriment. 
C)  Yes, because stopping smoking will benefit Robbie's health. 
D)  Yes, because Robbie gave up a legal right. 
A)  No, because Robbie gave no benefit to Aunt Ellie. 
B)  No, because Robbie did not suffer any detriment. 
C)  Yes, because stopping smoking will benefit Robbie's health. 
D)  Yes, because Robbie gave up a legal right.

Question 17

Which of the following would most likely be enforceable?

Accepted Answer

A)  An agreement supported by past consideration. 
B)  A substitute agreement to settle an undisputed debt. 
C)  A debt agreed to seven years ago in a state where the statute of limitations is six years. 
D)  A promise following the rendering of emergency services that is not supported by new consideration. 
A)  An agreement supported by past consideration. 
B)  A substitute agreement to settle an undisputed debt. 
C)  A debt agreed to seven years ago in a state where the statute of limitations is six years. 
D)  A promise following the rendering of emergency services that is not supported by new consideration.

Question 18

Which of the following is enforceable without consideration?

Accepted Answer

A)  A new promise to pay a debt barred by the statute of limitations. 
B)  An illusory promise. 
C)  A promise to supply all of the materials a manufacturer will need for the production of a certain item for a specified period of time. 
D)  In the majority of states, a promise by a father to pay someone for rendering emergency services to his injured son before the father had arrived at the accident scene. 
A)  A new promise to pay a debt barred by the statute of limitations. 
B)  An illusory promise. 
C)  A promise to supply all of the materials a manufacturer will need for the production of a certain item for a specified period of time. 
D)  In the majority of states, a promise by a father to pay someone for rendering emergency services to his injured son before the father had arrived at the accident scene.

Question 19

Charitable subscriptions are one of the most frequently occurring applications of the doctrine of promissory estoppel.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

Such transactions would include: 
a. Pro

Exam 12: Consideration

There are certain transactions that require consideration in order to be enforceable. These include:

Is a promise to pay a pre-existing moral obligation enforceable? Explain.

Discuss the concept of adequacy of consideration.

The two basic elements to consideration are legal adequacy and a bargained-for exchange.

Obligations contingent upon a stated event are known as conditional promises.

A gratuitous promise is a promise made without consideration.

Although such a gratuitous promise would be otherwise unenforceable, under the UCC, any claim arising out of an alleged breach of contract can be discharged by a written renunciation signed and delivered by the aggrieved party.

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

Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated. She expects to know for sure how much she will receive within a week or so. If Edward agrees:

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

In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor.

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will. Jan's promise:

Andy's private secretary promises not to disclose the contents of an email she typed if Andy will give her the next day off with pay. If the secretary takes the day off, Andy does not have to pay her for the day.

Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract?

Which of the following would most likely be enforceable?

Which of the following is enforceable without consideration?

Charitable subscriptions are one of the most frequently occurring applications of the doctrine of promissory estoppel.

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

Introduction to Law

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