Question 1

Parties are usuallyfree to bargain as they wish.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

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

Legally sufficient consideration is something of value in the eyes of the law.

Accepted Answer

A) True 
 B)False

Question 6

Valley Paragliders Association files a suit against Wing Designers,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 7

Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise,Niki quits her job with Online Ad Company,but Marketing Solutions does not hire her. Most likely,Marketing Solutions is

Accepted Answer

A) liable to Niki under the concept of rescission and new contract. 
B) liable to Niki under the doctrine of promissory estoppel. 
C) liable to Niki under the preexisting duty rule. 
D) not liable to Niki. 
A) liable to Niki under the concept of rescission and new contract. 
B) liable to Niki under the doctrine of promissory estoppel. 
C) liable to Niki under the preexisting duty rule. 
D) not liable to Niki.

Question 8

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

Accepted Answer

A) a covenant not to sue. 
B) anaccord and satisfaction. 
C) an unforeseen difficulty. 
D) a release. 
A) a covenant not to sue. 
B) anaccord and satisfaction. 
C) an unforeseen difficulty. 
D) a release.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A covenant not to sue always bars further recovery.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) unenforceable because Walsh's performance was a preexisting duty. 
B) unenforceable because Valley's promise was illusory. 
C) enforceable. 
D) unenforceable because Walsh's request modified the contract. 
A) unenforceable because Walsh's performance was a preexisting duty. 
B) unenforceable because Valley's promise was illusory. 
C) enforceable. 
D) unenforceable because Walsh's request modified the contract.

Exam 12: Consideration

Parties are usuallyfree to bargain as they wish.

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

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

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

Legally sufficient consideration is something of value in the eyes of the law.

Valley Paragliders Association files a suit against Wing Designers,Inc.,claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if

Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise,Niki quits her job with Online Ad Company,but Marketing Solutions does not hire her. Most likely,Marketing Solutions is

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

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

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

A covenant not to sue always bars further recovery.

The Legal Environment

Constitutional Law

Courts and Alternative Dispute Resolution

Tort Law

Product Liability

Intellectual Property Rights

Internet Law, social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Nature and Classification

Agreement

Capacity and Legality

Voluntary Consent

The Statute of Fraudswriting Requirement

Performance and Discharge

Breach and Remedies

Third Party Rights

International Law in a Global Economy

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

Banking in the Digital Age

Security Interests and Creditors Rights

Bankruptcy

Agency Relationships in Business

Employment, immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

All Forms of Partnership

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, officers, and Shareholders

Corporate Mergers, takeovers, and Termination

Investor Protection, insider Trading, and Corporate Governance

Administrative Law

Antitrust Law and Promoting Competition

Consumer and Environmental Law

Liability of Accountants and Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Filters