Exam 12: Consideration

Nancy, who lives in Birdville, wants to open a McHenry Roast Chicken franchise.Mark, a representative of McHenry, told Nancy, "If you will buy a lot and build a building in River City, we will give you a franchise." Nancy bought the lot and built the building as instructed only to discover that McHenry had awarded the franchise to a large corporation.McHenry claims no liability to Nancy since there was no consideration.Which statement best describes the situation?

Shane contracts to build a garage for Bob for a price of $6,000.Because of an increase in the cost of labor and materials, Shane refuses to perform.Bob wants the garage, so he agrees to pay an additional $500.In this case:

Jack moved from New Hampshire to Florida and decided to have an air conditioner installed in his car.After it was installed, Jack received a bill for $1,200.Jack called the dealer and told him he'd never heard of this service costing more than $500.They argued, but the dealer finally agreed to take $900.Is the agreement enforceable?

If Marguarite promises to pay Neal $300 not to defame her, the promise is unenforceable because tort law imposes a preexisting obligation on Neal to refrain from such an act.