Exam 13: Consideration

Jamie is building a house on her lot.She invites Earnie of Earnie's Excavation to bid on the excavation job.Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky.Based on the assumption that the soil in Jamie's lot will be similar,he and Jamie agree that the excavation will cost $3,000.When Earnie starts digging,he learns there is solid rock under Jamie's lot.Earnie says it will cost an extra $2,500 for the excavation work.Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000.If Earnie sues,the most likely result would be

Hilda owes Lex $3,000,which is an undisputed amount.If she offers him her car in full settlement of the debt and he accepts,the agreement is binding and he can no longer claim she owes him anything on the original debt.

Regarding consideration,an act occurs when a person

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers.Which of the following statements is true?

Marco agrees to sell Clowns R Us some balloons.The contract states that Clowns may buy as many balloons as it wishes.This agreement is

What two exceptions did the UCC create for accord and satisfaction check cases?

An unliquidated debt can be described as

A forbearance is,in essence,the opposite of an act.

Courts distinguish between mere gifts between parties and legally binding commitments by the element of consideration.

In January,Alex promised to pay Y-K Inc.$5,000 if it would refrain from filing suit against him on a breach of contract action.Y-K agreed and accepted a $5,000 check from Alex.Which of the following statements is correct?

A debt that is disputed because the parties disagree over its existence or amount is an unliquidated debt.

What is an output contract?

If Crosby and Dash are in disagreement as to the exact amount of money that Crosby owes Dash,then they may choose to form a new agreement at a set amount.If they both perform the new agreement,their conduct would be an example of

Zero,Inc.agreed to build Millie a storage building for $8,000.After beginning the project,Zero realized that it could not complete the job and make a profit.Zero demanded $9,500 to complete the building.Millie agreed to pay the $9,500.When the project was complete,Millie tendered $8,000 to Zero for the job.If Zero sues Millie for the remaining $1,500,

A completed act can be the basis for consideration.

What phrase explains how a requirements contract can be valid?

Bernie owes an undisputed amount to Wilde's Heating & Air Conditioning.Which of the following is true?

Juan agrees to paint Michelle's house for $1,000.Halfway through the job,Juan tells Michelle that he will need an extra $250 to finish the job.Which of the following is a correct evaluation of the situation?

Yolanda was shoveling snow from her sidewalk,and just to be nice,she also shoveled snow from her neighbor Melody's walk.The next day,Melody promises that she will pay Yolanda $25 for shoveling snow from her walk.Has a contract been created?

Bailey Co.and Spryt Bros.enter into a contract for the manufacture and sale of 400 lawn chairs.If both parties agree that a modification is necessary,