Exam 11: Consideration and Promissory Estoppel

Hartman,who worked for Aratize Inc.for 25 years,decides to retire.Upon hearing the news of his retirement,the president of Aratize announces a bonus of $250,000 to Hartman for his exceptional services toward Aratize thus far.But upon retiring,Hartman isn't paid the bonus.Hartman decides to sue the president and Aratize to recover the promised bonus.Which of the following is true in this case?

A contract is considered to be supported by legal value if the promisee receives a legal benefit.

Once an accord has been reached,the original contract cannot be enforced under any circumstance.

What is accord and satisfaction in contractual terms?

________ is a promise to refrain from doing an unlawful act,and therefore is a promise that will not support a contract.

A promise based on past consideration is not enforceable.

Corey in a desperate need to get to the airport decides to take his neighbor Tanner's help.Tanner agrees to help and drives Corey to the airport.Upon arrival at the airport,Corey promises to pay Tanner $25 for the gas fill.Which of the following conditions would have made the contract between Corey and Tanner enforceable?

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away.Sharon agrees to do so,provided she has the time for it.If Sharon fails to check the results and Mary wins the lottery,which of the following would be true of the contract between Mary and Sharon?

Explain the preexisting duty principle in private sector contracts.

A contract is considered to be supported by legal value if the promisor suffers a legal detriment.

A promise is something of legal value given in exchange of a consideration.

What is contract consideration?

Contracts based on illegal consideration are valid.

Give an account of the doctrine of promissory estoppel.

A contract in which a seller agrees to sell all of its production to a single buyer is known as a(n)________.

Which of the following is true of a gift promise?

What is a best-efforts contract?

Output contracts serve the legitimate business purposes of assuring the seller of a purchaser for all its output.

Forbearance of a legal right can be provided as consideration.

With regard to unenforceable contracts,an extortion call in which a man agrees to pay money in return for his family's safety would be considered as a(n)________.