Exam 12: Consideration

Chica,a women's clothing store,held a "prize drawing" for a $500 shopping spree on Saturday that it advertised throughout the week.Participation in the drawing required being at the store by noon and completing an application form that included personal information.The information would then be put into a database for marketing purposes.Fashion consultants offering merchandise for sale greeted customers arriving at the store on Saturday morning.Joy was the winner of the drawing.Has she given consideration for the prize?

Ron was employed by Mass Co.in 1970.At that time,he was given an employee handbook that described the particular steps that had to be taken before an employee could be fired.Later,in 2000,Mass published a new handbook by which all workers' statuses were changed to at-will employees.Mass then fired Ron.Ron claimed he was terminated without cause and was not afforded procedures described in the 1970 handbook,such as an appeal or review of the decision.He sued Mass under breach of contract based upon the 1970 employee handbook.Will he succeed?

John promises to pay Robert $100 per week,in exchange for Robert's promise not to beat John up.There is no consideration for John's promise.

Mr.Blue gave Mr.Green $1,000 to help his family out.Later,Mr.Blue entered into a sales contract with Mr.Green and wanted the consideration to be,in part,the $1,000.Which of the following describes the $1,000?

Which of the following terms in an agreement would not render it illusory?

In return for services Charles performed for Richard in the past,Richard promises to pay Charles $1,000.There is no consideration for Richard's promise.

Mr.White contracts with his wife Ms.White to watch their kids,Joe and Jimmy,one night for $50.What is the status of the contract between Mr.White and Ms.White?

In general,settlements of liquidated debts are not binding due to the absence of consideration,while settlements of unliquidated debts are a binding accord and satisfaction.As a matter of technical consideration law,what justifies this distinction?

Consideration can be a(n)________ in the case of a bilateral contract.

The settlement of an unliquidated debt is called a(n):

An agreement in which a party promises to supply all the other party's needs for a particular commodity is called a(n):

Able borrowed $10,000 from Baker,promising to return it with $1,000 interest on January 1,2006.There is no dispute that Able owes Baker $11,000 due on January 1,2006.On that day,Able gave Baker a valid check in the amount of $10,500 marked "payment in full for loan due January 1,2006." Baker accepted that check and deposited it into his account.If Baker then sues Able for the unpaid $500,what would the result be?

In Day v.Fortune Hi-Tech Marketing,Inc. ,the case in the text,the court held that:

Gift promises are not generally enforceable because they lack:

Why are "disguised gift" promises involving nominal consideration nonbinding because of the absence of consideration? Explain with one example.

Nancy's car collides with Randy's truck at an intersection.Randy believes the accident is his fault and asks Nancy if she will agree to a settlement of $5,000 for the damage to her vehicle and her promise not to sue him.Nancy believes the accident is her fault,but agrees to Randy's proposal anyway.Which of the following statements is true?

Helen worked for ABC Motors for 25 years.The president of ABC said to her: "In consideration of your past service for 25 years,I promise to give you a new car next week." However,he did not give the car.Is this promise legally enforceable?

Can a local businessman pay a police officer $50 a week to watch his business more closely?

Jack went to the ABC Casino to gamble.ABC offers its customers one free spin of the Million Dollar Wheel if they fill out an application form.Jack filled out the form,spun the Million Dollar Wheel,and won.However,now ABC refuses to pay,claiming that because Jack did not purchase his chance at the Million Dollar Wheel,Jack gave no consideration and therefore,no contract was formed.Identify the accurate statement.

Owen once owed Carl a $1,000 debt,but the statute of limitations ran on that obligation,discharging Owen.Later,Owen promises in writing to pay Carl the debt.Why is there no consideration for this promise? Why is it binding anyway? What additional requirement do some states impose to make the promise binding?