Exam 13: Consideration

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

Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can

Under a contract with Valley Vineyard, Walsh begins grading a terraced hillside for the planting of grapes. Halfway through the project, Walsh asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." Valley agrees but later refuses to pay. Valley's agreement to pay more is

Essentially, adequacy of consideration concerns the fairness of the bargain.

In a covenant not to sue, the parties substitute a contractual obligation for some other type of action.

Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

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

Delightful Weddings, LLC, and Event Catering Inc. have an executory contract. They agree to rescind their contract and simultaneously enter into a new contract. If the initial contract was subject to a preexisting duty, the new contract will most likely be

A release bars any further recovery beyond the terms stated in the release.

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

An obligation is enforceable only if it is made in return for actions or events that have already taken place.

In contract law, the term consideration refers to the serious thought that underlies a party's intent to enter into a contract.

Rescission is the remaking of a contract so as to enrich one party at the expense of the other.

The element of bargained-for exchange distinguishes contracts from gifts.

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

In contract law, "consideration" refers to the time that a party takes to evaluate a deal.

While sailboarding, Jolene is injured when Kirby carelessly crosses her path. Kirby's insurance company offers Jolene $50,000 to release Kirby from liability, and she accepts. Later, Jolene learns that her injuries are more serious than she realized. The release is

The fact that the word consideration is used in an agreement means, by itself, that consideration has been given.

To be legally sufficient, consideration must be evidenced by something tangible.

​Fact Pattern 13-4 Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay. -Refer to Fact Pattern 13-4. ​If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is