Exam 12: 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.

Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.

A modification of a preexisting contract occurs when the parties agree to change one or more of its terms.

Orwin, owner of a used furniture store, gives Maggie a signed offer to buy her living room furniture for $800.This offer:

Marilyn contracted with Bravo Builders to build an addition to her house for $15,000.After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job.Assuming Marilyn agrees, which of the following is correct?

Remo helped Hank study all night for an important exam.After Hank got an "A" on the exam, he told Remo , "I will give you $10 for helping me get a good grade." Remo said, "Thanks, I'll take it." There is:

In the case of Denney v.Reppert the court allowed the employees of a bank to collect a reward, because they supplied information that led to the arrest and conviction of a bank robber.

A gratuitous promise is a promise made without consideration.

The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire production.After signing the agreement, Abbot can increase its production from one shift to two shifts and Baker will have to buy all of the doubled production.

Promises to perform prior unenforceable obligations  are enforceable even though they are not supported by consideration.

An exclusive dealing contract is one type of contract which is illusory, because it lacks consideration.

Which of the following are the two basic elements to consideration?

An illusory promise is consideration for a return promise.

Under the common law, payment of a lesser sum of money than is owed in consideration of a promise to discharge a fully matured, undisputed debt is legally sufficient to support the promise of discharge.

Jason's mother would like him to go to college, so in June he enrolls at the local university.He also quits his job and tells his mother his plans to take classes.His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485.Jason's mother's promise is:

Which of the following statements best describes charitable subscription promises?

Consideration is the inducement to make a promise enforceable.

Herb promises to give his nephew, Curt, his old TV when the new one he ordered arrives.Explain whether this promise is enforceable, and include in your discussion the concept of "bargained-for exchange."

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

Exclusive dealing contracts are binding because sufficient consideration is present.