Exam 9: Consideration, Capacity, and Legality

Countrywide Trucking Inc. contracts with Dewey to transport crated goods to a certain destination for $5,000. Countrywide delivers the crates, but Dewey does not pay. Countrywide learns that the crates contained stolen goods. Countrywide can recover from Dewey

Free

(Multiple Choice)

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(75)

Question 1

Correct Answer:

Verified

If an illegal contract is executory, either party can always enforce it.

Free

(True/False)

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(70)

Question 2

Correct Answer:

Verified

False

Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for

Free

(Multiple Choice)

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(78)

Question 3

Correct Answer:

Verified

Desi's Uncle Eduardo tells Desi, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." This promise

(Multiple Choice)

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(75)

Question 4

The courts are usually not concerned if one of the wrongdoers in an illegal contract is unjustly enriched at the expense of the other.

(True/False)

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Question 5

A contract involving an unlicensed practitioner is generally illegal and unenforceable.

(True/False)

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Question 6

Ross promises to pay Sara, his niece, $5,000 if she obtains her degree at Tech University, where she is in her third year. Sara graduates. Ross is

(Multiple Choice)

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Question 7

Risks ordinarily assumed in business constitute consideration for the modification of a contract.

(True/False)

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Question 8

Fact Pattern 9-1 Sports Bar & Grill and Tea & Tarts Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tea & Tarts a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot. -Refer to Fact Pattern 9-1. Tea & Tarts's forbearance from towing is legally sufficient consideration

(Multiple Choice)

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Question 9

Legal sufficiency of consideration is the same as adequacy of consideration.

(True/False)

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Question 10

Performance can constitute the consideration that creates a contractual obligation.

(True/False)

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Question 11

Rose questions whether there is consideration for her contract to perform with Saxophone Symphony. To constitute consideration, there must be

(Multiple Choice)

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(73)

Question 12

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

(Multiple Choice)

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(73)

Question 13

Chet, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of

(Multiple Choice)

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(95)

Question 14

A covenant not to sue does not always bar further recovery.

(True/False)

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Question 15

If a minor disaffirms a contract, he or she must disaffirm the entire contract.

(True/False)

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Question 16

Two parties can mutually agree to rescind a contract unless it is executory.

(True/False)

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Question 17

Executed contracts are presumed ratified.

(True/False)

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Question 18

Pi in the Sky Aircraft Inc. files a suit against Quest Engineering Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if

(Multiple Choice)

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(87)

Question 19

Twyla's dock is damaged in a boating accident caused by Ulrich's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulrich fails to pay, Twyla can bring an action for breach of contract. This is

(Multiple Choice)

4.9/5

(72)

Question 20

Showing 1 - 20 of 72

Countrywide Trucking Inc. contracts with Dewey to transport crated goods to a certain destination for $5,000. Countrywide delivers the crates, but Dewey does not pay. Countrywide learns that the crates contained stolen goods. Countrywide can recover from Dewey

If an illegal contract is executory, either party can always enforce it.

Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for

Desi's Uncle Eduardo tells Desi, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." This promise

The courts are usually not concerned if one of the wrongdoers in an illegal contract is unjustly enriched at the expense of the other.

A contract involving an unlicensed practitioner is generally illegal and unenforceable.

Ross promises to pay Sara, his niece, $5,000 if she obtains her degree at Tech University, where she is in her third year. Sara graduates. Ross is

Risks ordinarily assumed in business constitute consideration for the modification of a contract.

Legal sufficiency of consideration is the same as adequacy of consideration.

Performance can constitute the consideration that creates a contractual obligation.

Rose questions whether there is consideration for her contract to perform with Saxophone Symphony. To constitute consideration, there must be

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

Chet, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of

A covenant not to sue does not always bar further recovery.

If a minor disaffirms a contract, he or she must disaffirm the entire contract.

Two parties can mutually agree to rescind a contract unless it is executory.

Executed contracts are presumed ratified.

Pi in the Sky Aircraft Inc. files a suit against Quest Engineering Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if

Twyla's dock is damaged in a boating accident caused by Ulrich's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulrich fails to pay, Twyla can bring an action for breach of contract. This is

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

Exam 9: Consideration, Capacity, and Legality

Countrywide Trucking Inc. contracts with Dewey to transport crated goods to a certain destination for $5,000. Countrywide delivers the crates, but Dewey does not pay. Countrywide learns that the crates contained stolen goods. Countrywide can recover from Dewey​

If an illegal contract is executory, either party can always enforce it.​

Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for​

Desi's Uncle Eduardo tells Desi, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." This promise​

The courts are usually not concerned if one of the wrongdoers in an illegal contract is unjustly enriched at the expense of the other.​

A contract involving an unlicensed practitioner is generally illegal and unenforceable.​

Ross promises to pay Sara, his niece, $5,000 if she obtains her degree at Tech University, where she is in her third year. Sara graduates. Ross is​

Risks ordinarily assumed in business constitute consideration for the modification of a contract.​

Legal sufficiency of consideration is the same as adequacy of consideration. ​

Performance can constitute the consideration that creates a contractual obligation.​

Rose questions whether there is consideration for her contract to perform with Saxophone Symphony. To constitute consideration, there must be​

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump​

Chet, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of​

A covenant not to sue does not always bar further recovery.​

If a minor disaffirms a contract, he or she must disaffirm the entire contract.​

Two parties can mutually agree to rescind a contract unless it is executory.​

Executed contracts are presumed ratified.​

Pi in the Sky Aircraft Inc. files a suit against Quest Engineering Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if​

Twyla's dock is damaged in a boating accident caused by Ulrich's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulrich fails to pay, Twyla can bring an action for breach of contract. This is​

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

Countrywide Trucking Inc. contracts with Dewey to transport crated goods to a certain destination for $5,000. Countrywide delivers the crates, but Dewey does not pay. Countrywide learns that the crates contained stolen goods. Countrywide can recover from Dewey

If an illegal contract is executory, either party can always enforce it.

Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for

Desi's Uncle Eduardo tells Desi, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." This promise

The courts are usually not concerned if one of the wrongdoers in an illegal contract is unjustly enriched at the expense of the other.

A contract involving an unlicensed practitioner is generally illegal and unenforceable.

Ross promises to pay Sara, his niece, $5,000 if she obtains her degree at Tech University, where she is in her third year. Sara graduates. Ross is

Risks ordinarily assumed in business constitute consideration for the modification of a contract.

Legal sufficiency of consideration is the same as adequacy of consideration.

Performance can constitute the consideration that creates a contractual obligation.

Rose questions whether there is consideration for her contract to perform with Saxophone Symphony. To constitute consideration, there must be

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

Chet, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of

A covenant not to sue does not always bar further recovery.

If a minor disaffirms a contract, he or she must disaffirm the entire contract.

Two parties can mutually agree to rescind a contract unless it is executory.

Executed contracts are presumed ratified.

Pi in the Sky Aircraft Inc. files a suit against Quest Engineering Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if

Twyla's dock is damaged in a boating accident caused by Ulrich's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulrich fails to pay, Twyla can bring an action for breach of contract. This is