Question 1

Consideration is what a promisor demands and receives as the price for a promise.

Accepted Answer

A) True 
 B)False

Question 2

In a composition of creditors,the various creditors of a single debtor mutually agree to accept a fractional part of their claims in full satisfaction of the claims.

Accepted Answer

A) True 
 B)False

Question 3

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to a part payment made in satisfaction of a(n)__________ debt.

Accepted Answer

A)  unliquidated 
B)  superfluous 
C)  non-superfluous 
D)  liquidated 
A)  unliquidated 
B)  superfluous 
C)  non-superfluous 
D)  liquidated

Question 4

When a debtor tender a check stating "paid in full" and the creditor cashes the check,the debt:

Accepted Answer

A)  is always discharged. 
B)  may be discharged if it is a liquidated debt. 
C)  may be discharged if it is a unliquidated debt. 
D)  is never discharged. 
A)  is always discharged. 
B)  may be discharged if it is a liquidated debt. 
C)  may be discharged if it is a unliquidated debt. 
D)  is never discharged.

Question 5

True consideration occurs only when the value of one promise is equal to the value of the promise given by the other party.

Accepted Answer

A) True 
 B)False

Question 6

A cancellation provision:

Accepted Answer

A)  makes a promise illusory. 
B)  gives a person a free way out. 
C)  is limited to the terms set forth by the provision. 
D)  none of the above. 
A)  makes a promise illusory. 
B)  gives a person a free way out. 
C)  is limited to the terms set forth by the provision. 
D)  none of the above.

Question 7

Which of the following is not consideration for a present promise?

Accepted Answer

A)  a good faith adjustment 
B)  compromise and release of claims 
C)  the promise to pay one's child support obligation,consistent with a pre-existing court order. 
D)  the performance of a requested act 
A)  a good faith adjustment 
B)  compromise and release of claims 
C)  the promise to pay one's child support obligation,consistent with a pre-existing court order. 
D)  the performance of a requested act

Question 8

Which of the following can be consideration for a promise?

Accepted Answer

A)  Refraining from beating one's spouse. 
B)  Promising to refrain from beating one's spouse. 
C)  Refraining from smoking cigarettes. 
D)  Refraining from using cocaine. 
A)  Refraining from beating one's spouse. 
B)  Promising to refrain from beating one's spouse. 
C)  Refraining from smoking cigarettes. 
D)  Refraining from using cocaine.

Question 9

Consideration always must be an act or the promise to perform an act.

Accepted Answer

A) True 
 B)False

Exam 15: Consideration

Consideration is what a promisor demands and receives as the price for a promise.

In a composition of creditors,the various creditors of a single debtor mutually agree to accept a fractional part of their claims in full satisfaction of the claims.

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to a part payment made in satisfaction of a(n)__________ debt.

When a debtor tender a check stating "paid in full" and the creditor cashes the check,the debt:

True consideration occurs only when the value of one promise is equal to the value of the promise given by the other party.

A cancellation provision:

Which of the following is not consideration for a present promise?

Which of the following can be consideration for a promise?

Consideration always must be an act or the promise to perform an act.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters