Question 1

What transactions are enforceable even though they are not supported by consideration?

Accepted Answer

Such transactions would include:
a.Promi

Question 2

Andrew agrees to paint Rosalene's house for $500.Two days after he starts the job,he decides that $500 isn't enough money.He refuses to finish the job,unless Rosalene agrees to pay him $100 more.What principle applies to this fact situation?

Accepted Answer

A) The acceptance of additional money to settle a disputed claim is supported by consideration. 
B) A past obligation is sufficient consideration for a new promise. 
C) Andrew was already obligated to paint the house. He gives no additional consideration in return for Rosalene's promise to pay more money. 
D) Rosalene has made a promise in exchange for a forbearance. 
A) The acceptance of additional money to settle a disputed claim is supported by consideration. 
B) A past obligation is sufficient consideration for a new promise. 
C) Andrew was already obligated to paint the house. He gives no additional consideration in return for Rosalene's promise to pay more money. 
D) Rosalene has made a promise in exchange for a forbearance.

Question 3

A gratuitous promise is a promise made without consideration.

Accepted Answer

A) True 
 B)False

Question 4

Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road.After Marnie locates her dog,Marnie promises to reimburse Dana for the cost of treating the dog.Marnie's promise is binding,because there is a bargained-for-exchange.

Accepted Answer

A) True 
 B)False

Question 5

Howard ordered an aluminum storm door for $249.99.Before it was delivered,the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99.Howard called the store and demanded the advertised price.If the store says "okay":

Accepted Answer

A) Howard must pay $179.99. 
B) Howard must pay $249.99. 
C) there is no contract. 
D) there is a contract for the reasonable value of the door. 
A) Howard must pay $179.99. 
B) Howard must pay $249.99. 
C) there is no contract. 
D) there is a contract for the reasonable value of the door.

Question 6

Aunt Ellie promises her 21-year-old nephew,Robbie,that she will pay him $100 if he quits smoking for a month.If Robbie does,is there a binding contract?

Accepted Answer

A) No, because Robbie gave no benefit to Aunt Ellie. 
B) No, because Robbie did not suffer any detriment. 
C) Yes, because stopping smoking will benefit Robbie's health. 
D) Yes, because Robbie gave up a legal right. 
A) No, because Robbie gave no benefit to Aunt Ellie. 
B) No, because Robbie did not suffer any detriment. 
C) Yes, because stopping smoking will benefit Robbie's health. 
D) Yes, because Robbie gave up a legal right.

Question 7

Sandy's private secretary promises not to disclose the contents of an email she typed if Sandy will give her the next day off with pay.If the secretary takes the day off,Sandy does not have to pay her for the day.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would most likely be enforceable?

Accepted Answer

A) An agreement supported by past consideration. 
B) A substitute agreement to settle an undisputed debt. 
C) A debt agreed to seven years ago in a state where the statute of limitations is six years. 
D) A promise following the rendering of emergency services that is not supported by new consideration. 
A) An agreement supported by past consideration. 
B) A substitute agreement to settle an undisputed debt. 
C) A debt agreed to seven years ago in a state where the statute of limitations is six years. 
D) A promise following the rendering of emergency services that is not supported by new consideration.

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

Define a substituted contract and explain how it affects an agreement.

Accepted Answer

A substituted contract results when the

Question 11

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is correct with regard to consideration?

Accepted Answer

A) In a unilateral contract, a promise is exchanged for an act or forbearance to act. 
B) In a bilateral contract, there is an exchange of promises. 
C) Legal sufficiency is always related to adequacy of consideration. 
D) Two of the above, (a) and (b) are correct. 
A) In a unilateral contract, a promise is exchanged for an act or forbearance to act. 
B) In a bilateral contract, there is an exchange of promises. 
C) Legal sufficiency is always related to adequacy of consideration. 
D) Two of the above, (a) and (b) are correct.

Question 13

Exclusive dealing contracts are binding because sufficient consideration is present.

Accepted Answer

A) True 
 B)False

Question 14

In a unilateral contract,a promise is exchanged from one party to another for a promise to forbear to act.

Accepted Answer

A) True 
 B)False

Question 15

An illusory promise is consideration for a return promise.

Accepted Answer

A) True 
 B)False

Question 16

Clint contests the amount of a bill he received from Car Care Specialists.Under the Restatement,settlement of the claim:

Accepted Answer

A) is not valid consideration. 
B) is not a legal detriment to Clint if his contentions were not made in good faith. 
C) is valid consideration if at the time of the settlement the claim was doubtful because of uncertainty as to the facts. 
D) does not involve a disputed debt unless Clint contests both the existence of the obligation and the amount of the bill. 
A) is not valid consideration. 
B) is not a legal detriment to Clint if his contentions were not made in good faith. 
C) is valid consideration if at the time of the settlement the claim was doubtful because of uncertainty as to the facts. 
D) does not involve a disputed debt unless Clint contests both the existence of the obligation and the amount of the bill.

Question 17

Herb promises to give his nephew,Curt,his old TV when the new one he ordered arrives. Explain whether this promise is enforceable,and include in your discussion the concept of "bargained-for exchange."

Accepted Answer

Herb's promise is unenforceable because

Question 18

In some states,a contract under seal is binding without consideration.

Accepted Answer

A) True 
 B)False

Question 19

Alice says to Brian,"If I decide to buy a word processor next year,I will buy it from you." This is an example of:

Accepted Answer

A) an illusory promise. 
B) past consideration. 
C) the pre-existing duty rule. 
D) good consideration. 
A) an illusory promise. 
B) past consideration. 
C) the pre-existing duty rule. 
D) good consideration.

Question 20

Marilyn contracted with Bravo Builders to build an addition to her house for $15,000.After digging the foundation,Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job.Assuming Marilyn agrees,which of the following is correct?

Accepted Answer

A) Marilyn will have to pay $20,000. 
B) This is a contract under seal which is enforceable. 
C) This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders. 
D) This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders. 
A) Marilyn will have to pay $20,000. 
B) This is a contract under seal which is enforceable. 
C) This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders. 
D) This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders.

Exam 12: Consideration

What transactions are enforceable even though they are not supported by consideration?

Andrew agrees to paint Rosalene's house for $500.Two days after he starts the job,he decides that $500 isn't enough money.He refuses to finish the job,unless Rosalene agrees to pay him $100 more.What principle applies to this fact situation?

A gratuitous promise is a promise made without consideration.

Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road.After Marnie locates her dog,Marnie promises to reimburse Dana for the cost of treating the dog.Marnie's promise is binding,because there is a bargained-for-exchange.

Howard ordered an aluminum storm door for $249.99.Before it was delivered,the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99.Howard called the store and demanded the advertised price.If the store says "okay":

Aunt Ellie promises her 21-year-old nephew,Robbie,that she will pay him $100 if he quits smoking for a month.If Robbie does,is there a binding contract?

Sandy's private secretary promises not to disclose the contents of an email she typed if Sandy will give her the next day off with pay.If the secretary takes the day off,Sandy does not have to pay her for the day.

Which of the following would most likely be 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.

Define a substituted contract and explain how it affects an agreement.

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

Which of the following is correct with regard to consideration?

Exclusive dealing contracts are binding because sufficient consideration is present.

In a unilateral contract,a promise is exchanged from one party to another for a promise to forbear to act.

An illusory promise is consideration for a return promise.

Clint contests the amount of a bill he received from Car Care Specialists.Under the Restatement,settlement of the claim:

Herb promises to give his nephew,Curt,his old TV when the new one he ordered arrives. Explain whether this promise is enforceable,and include in your discussion the concept of "bargained-for exchange."

In some states,a contract under seal is binding without consideration.

Alice says to Brian,"If I decide to buy a word processor next year,I will buy it from you." This is an example of:

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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