Exam 15: Consideration

Charitable subscriptions by which individuals make pledges to finance the construction of a college building,a church or another structure for charitable purposes are binding to the extent that the donor should have reasonably realized that the charity was relying on the promise in undertaking the building program.

Courts will consider the adequacy of the consideration when:

Which of the following is not a necessary element of promissory estoppel?

Ordinarily,a promise to perform an existing legal obligation is:

The effect of the making of a partial payment to satisfy an admitted debt is an example of the rule that:

An agreement to pay reasonable additional compensation to a contractor for the performance of a pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:

What damages are recoverable in a case of promissory estoppel?

A contract in which one party agrees to purchase goods from another contingent upon the purchaser's ability to locate suitable financing is said to:

When there is no consideration for a promise,the agreement is:

For a bilateral contract to be enforceable there must be:

An illusory promise creates a bilateral contract.

John received a promotion at work and felt new clothes would be necessary in the new position.John went to a local store and charged three ties on his charge account at a cost of $60 each.Bill,a friend of John's,saw a sidewalk vendor selling ties at a cost of three for $10 and bought three at that price.The friends compared purchases that night and found that they had purchased identical ties.John became enraged and said that he would not pay the charge-account bill because the ties were clearly not worth $60 each.Bill indicated that he would testify on John's behalf if litigation ensued.What would be the probable outcome of the lawsuit?

Under the __________approach,consideration is defined as a benefit received by the promisor or a detriment incurred by the promisee.

Sara Student wished to pay off her $5,000 student loan.If she sends in a check for $3,000 and the creditor cashes the check,the debt will be fully satisfied provided the check is marked "paid in full."

With regard to an unliquidated debt,payment by the debtor of less than the amount claimed by the creditor is consideration for the latter's agreement to release or settle the claim.

Damages recoverable in a case of promissory estoppel are determined by the profits that the promisee expected.

Dave Tompkins was up late one night watching a television campaign for a charitable organization.The organization was seeking donations in order to construct a new building that would serve as the organization's headquarters.One of Tomkins' favorite performers appeared to promote the campaign,and this prompted Dave to telephone in a pledge.Tomkins pledged $10,000 to the charity and,feeling good about his action,finally went to sleep.The next morning,Tomkins regretted making the pledge because its enforcement would cause great personal financial hardship.Will the charity be able to legally enforce the pledge Tomkins made? If so,why might the charity choose not to enforce a lawful pledge?

Will the law enforce every promise?

Examples of illusory promises include:

Generally,a promise is legally enforceable even if nothing is given or received for the promise.