Question 1

Is a promise to pay a pre-existing moral obligation enforceable? Explain.

Accepted Answer

a.Under the common law, a modification of an existing contract must be supported by mutual consideration to be enforceable.The UCC states that the modification of an existing contract for the sale of goods is enforceable without consideration provided both parties intend to modify the contract and they act in good faith.b.An output contract is an agreement of a seller to sell its entire production to a particular buyer.A requirements contract is an agreement to purchase from a particular seller all the materials of a particular kind that the purchaser needs.These contracts are not illusory.Illusory promises are words of promise that make performance entirely optional with the purported promisor.

Question 2

Which of the following statements best describes charitable subscription promises?

Accepted Answer

A) They are generally not enforceable. 
B) They are equated with gifts. 
C) They are generally enforceable if there is reliance or a probability of reliance by the charity. 
D) Courts generally find that it would be unjust to enforce them because persons who promise charitable subscriptions do not expect to be held accountable for them. 
A) They are generally not enforceable. 
B) They are equated with gifts. 
C) They are generally enforceable if there is reliance or a probability of reliance by the charity. 
D) Courts generally find that it would be unjust to enforce them because persons who promise charitable subscriptions do not expect to be held accountable for them. C

Question 3

An undisputed debt is:

Accepted Answer

A) a contested amount of debt. 
B) an obligation that is not contested as to existence but is contested as to the exact amount of the debt. 
C) an obligation that is not contested as to its existence or amount. 
D) a debt action that the court will not hear because it is not definite and certain. 
A) a contested amount of debt. 
B) an obligation that is not contested as to existence but is contested as to the exact amount of the debt. 
C) an obligation that is not contested as to its existence or amount. 
D) a debt action that the court will not hear because it is not definite and certain. C

Question 4

An illusory promise is consideration for a return promise.

Accepted Answer

A) True 
 B)False

Question 5

Gratuitous promises are generally legally enforceable.

Accepted Answer

A) True 
 B)False

Question 6

The Uniform Commercial Code follows the common law rule that requires a modification of an existing contract to be supported by consideration in order to be valid.

Accepted Answer

A) True 
 B)False

Question 7

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

Accepted Answer

A) an illusory promise. 
B) past consideration. 
C) the pre-existing duty rule. 
D) good consideration. 
A) an illusory promise. 
B) past consideration. 
C) the pre-existing duty rule. 
D) good consideration.

Question 8

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will.In this case:

Accepted Answer

A) Jan has made an illusory promise. 
B) Jan's promise is legally sufficient unless Jan knows she cannot inherit the $1 million. 
C) Jan has made a conditional promise which is not sufficient to form consideration. 
D) Jan's promise is legally inadequate and the courts will therefore not enforce it. 
A) Jan has made an illusory promise. 
B) Jan's promise is legally sufficient unless Jan knows she cannot inherit the $1 million. 
C) Jan has made a conditional promise which is not sufficient to form consideration. 
D) Jan's promise is legally inadequate and the courts will therefore not enforce it.

Question 9

Charitable subscriptions are one of the most frequently occurring applications of the doctrine of promissory estoppel.

Accepted Answer

A) True 
 B)False

Question 10

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Accepted Answer

A) True 
 B)False

Question 11

Define a substituted contract and explain how it affects an agreement.

Accepted Answer

A substituted contract results when the

Question 12

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

Accepted Answer

A) True 
 B)False

Question 13

An output contract is a special form of an illusory contract.

Accepted Answer

A) True 
 B)False

Question 14

Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.

Accepted Answer

A) True 
 B)False

Question 15

Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms.

Accepted Answer

A) True 
 B)False

Question 16

An exclusive dealing contract is one type of contract which is illusory, because it lacks consideration.

Accepted Answer

A) True 
 B)False

Question 17

In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor.

Accepted Answer

A) True 
 B)False

Question 18

Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following will often not constitute valid consideration?

Accepted Answer

A) Forbearance to do an act. 
B) Performance of services. 
C) A promise to perform. 
D) An illusory promise. 
A) Forbearance to do an act. 
B) Performance of services. 
C) A promise to perform. 
D) An illusory promise.

Question 20

Which of the following would not be enforceable without additional consideration?

Accepted Answer

A) A promise to pay a debt barred by the statute of limitations. 
B) A promise to pay a debt discharged in bankruptcy where the promise meets the requirements of the Bankruptcy Code. 
C) A promise which falls within the doctrine of promissory estoppel. 
D) The settlement of an undisputed debt. 
A) A promise to pay a debt barred by the statute of limitations. 
B) A promise to pay a debt discharged in bankruptcy where the promise meets the requirements of the Bankruptcy Code. 
C) A promise which falls within the doctrine of promissory estoppel. 
D) The settlement of an undisputed debt.

Exam 12: Consideration

Is a promise to pay a pre-existing moral obligation enforceable? Explain.

Which of the following statements best describes charitable subscription promises?

An undisputed debt is:

An illusory promise is consideration for a return promise.

Gratuitous promises are generally legally enforceable.

The Uniform Commercial Code follows the common law rule that requires a modification of an existing contract to be supported by consideration in order to be valid.

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will.In this case:

Charitable subscriptions are one of the most frequently occurring applications of the doctrine of promissory estoppel.

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Define a substituted contract and explain how it affects an agreement.

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

An output contract is a special form of an illusory contract.

Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.

Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms.

An exclusive dealing contract is one type of contract which is illusory, because it lacks consideration.

In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor.

Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain.

Which of the following will often not constitute valid consideration?

Which of the following would not be enforceable without additional consideration?

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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