Exam 11: Consideration and Promissory Estoppel

Promissory estoppel is an equity doctrine that permits parties to enforce a contract that includes consideration.

Contracts falling under past consideration are unenforceable.

Mark,who recently won a lottery,tells Sean that he will split his lottery winnings with him if Sean can arrange Mark's interview with his boss.Sean talks to his boss and the meeting is arranged.But when Sean goes to collect half of Mark's lottery winnings,Mark refuses to pay.What is the act of consideration in this scenario?

Which of the following is true of an illegal consideration?

A completed gift promise cannot be rescinded for lack of consideration.

Which of the following is true of output contracts?

Illusory promises require both parties to perform their contractual obligations.

A consideration need not be of legal value to be enforceable.

Which of the following is true of a buyer with an output contract?

Under which of the following conditions can one convert a gift promise into an enforceable promise?

If the accord is performed,it is called a satisfaction.

________ is an equity doctrine that permits a court to order enforcement of a contract that lacks consideration.

Illusory promises are enforceable if one of the parties has performed their contractual obligation.

A contract is said to have legal value if ________.

Toughones,a car part manufacturer,signed a contract to license computer software from Vizera Inc.for $250,000.This software is to be used to keep track of inventory,accounts receivable,and other financial data.After the software was installed,the computer system worked,but it had a few glitches.Toughones refused to pay the full amount mentioned in the contract.To settle the dispute,the parties agree that $180,000 is to be paid as full and final payment for the software.Toughones paid $180,000 as agreed.What kind of agreement did Toughones and Vizera reach in the end?