Question 1

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.

Accepted Answer

A) True 
 B)False

Question 2

Fact Pattern 13-5​
Brick and Carmen are in an auto accident. Brick offers Carmen $2,000 if she promises not to pursue her potential legal claim against Brick. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 13-5. In Carmen's suit against Brick to recover her repair and medical expenses, Carmen will most likely recover

Accepted Answer

A)  ​half the amount to pay the costs over what Brick already paid Carmen. 
B)  ​nothing. 
C)  ​the estimated amount to pay those costs and any other liability. 
D)  ​the exact amount to pay those costs and no more. 
A)  ​half the amount to pay the costs over what Brick already paid Carmen. 
B)  ​nothing. 
C)  ​the estimated amount to pay those costs and any other liability. 
D)  ​the exact amount to pay those costs and no more.

Question 3

Fact Pattern 13-5​
Brick and Carmen are in an auto accident. Brick offers Carmen $2,000 if she promises not to pursue her potential legal claim against Brick. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 13-5. The agreement between Brick and Carmen is

Accepted Answer

A)  ​a covenant not to sue. 
B)  ​an illusory promise. 
C)  ​a release. 
D)  ​promissory estoppel. 
A)  ​a covenant not to sue. 
B)  ​an illusory promise. 
C)  ​a release. 
D)  ​promissory estoppel.

Question 4

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is

Accepted Answer

A)  ​not consideration because her voluntary consent may be lacking. 
B)  ​not consideration because the exchange is not a bargain. 
C)  ​consideration. 
D)  ​not consideration because the value is not legally sufficient. 
A)  ​not consideration because her voluntary consent may be lacking. 
B)  ​not consideration because the exchange is not a bargain. 
C)  ​consideration. 
D)  ​not consideration because the value is not legally sufficient.

Question 5

In general, a court will question the adequacy of consideration based solely on the comparative value of the things exchanged.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Dean, the president of Billing & Credit Company, promises to pay his employee Ewing, who is dangerously obese, $10 for every pound that he loses within the next two years. Ewing agrees, diets and exercises, loses 154 pounds, and asks Dean for $1,540. Dean refuses to pay, saying that he does not remember the promise, but that even if he did make it, there was no consideration, and Ewing's improved health is a sufficient benefit for his effort and sacrifice. Ewing files a suit against Dean. In whose favor is the court likely to rule, and why?

Accepted Answer

A court is most likely to rule against D

Question 8

Fact Pattern 13-1
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 13-1. Sports Bar's discount is legally sufficient consideration

Accepted Answer

A)  ​because it is a promise of something of value. 
B)  ​only if Sports Bar adds a cash rebate. 
C)  ​only if Tea & Tarts uses it. 
D)  ​under no circumstances. 
A)  ​because it is a promise of something of value. 
B)  ​only if Sports Bar adds a cash rebate. 
C)  ​only if Tea & Tarts uses it. 
D)  ​under no circumstances.

Question 9

Fact Pattern 13-2​
Boyd defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 13-2. If, as Boyd claims, the consideration in this problem is inadequate, it may indicate a lack of

Accepted Answer

A)  ​accord in Boyd's satisfaction with the value of the deal. 
B)  ​voluntary consent. 
C)  ​flexibility on the part of College Credit to accommodate Boyd's needs. 
D)  ​"heft," "substance," or "weight" in the terms of the contract. 
A)  ​accord in Boyd's satisfaction with the value of the deal. 
B)  ​voluntary consent. 
C)  ​flexibility on the part of College Credit to accommodate Boyd's needs. 
D)  ​"heft," "substance," or "weight" in the terms of the contract.

Question 10

Even if the terms of a contract express such certainty of performance that the promisor has not definitely promised to do anything, the promise binds the promisor.

Accepted Answer

A) True 
 B)False

Question 11

Pie 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

Accepted Answer

A)  ​there is a large disparity in the amount of consideration exchanged. 
B)  ​the consideration involves the performance of services. 
C)  ​something of value passed between the parties. 
D)  ​the consideration is worth less than $100. 
A)  ​there is a large disparity in the amount of consideration exchanged. 
B)  ​the consideration involves the performance of services. 
C)  ​something of value passed between the parties. 
D)  ​the consideration is worth less than $100.

Question 12

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

Accepted Answer

A)  ​an enforceable contract. 
B)  ​an illusory promise. 
C)  ​an option-to-cancel clause. 
D)  ​an output contract. 
A)  ​an enforceable contract. 
B)  ​an illusory promise. 
C)  ​an option-to-cancel clause. 
D)  ​an output contract.

Exam 13: Consideration

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is

In general, a court will question the adequacy of consideration based solely on the comparative value of the things exchanged.

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

Even if the terms of a contract express such certainty of performance that the promisor has not definitely promised to do anything, the promise binds the promisor.

Pie 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

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

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