Exam 13: Consideration

Quentin questions whether there is consideration for his contract with Rainey to exchange his performance with the Symphonic Saxophone Sextet for her payment of a certain amount.To constitute consideration,there must be

Fact Pattern 13-B1 (Questions B9-B10 apply) Quik Downtown Delivery contracts with Rico's Tacos to deliver its products.Both parties change their minds,however,and inform each other that they would like to cancel the contract. -Refer to Fact Pattern 13-B1.The next day,Quik again offers to deliver Rico's products.Rico's is willing to deal,but for a new price.Quik and Rico's

Industrial Engineering,Inc.,promises to give stock options to Jasmine for processes she has already designed for the firm.This promise is enforceable

If a promise is made,it can be enforced.

There can be no satisfaction unless there is first an accord.

The element of bargained-for exchange distinguishes contracts from gifts.

Produce Packaging Company promises its employees a 10 percent raise at the end of the year if productivity has increased and management feels the raise is warranted.Produce Packaging must

Risks ordinarily assumed in business constitute consideration for the modification of a contract.

Todos,Ltd.,agrees to market the products of United Sales,Inc.,in Venezuela.When the government is unexpectedly overthrown in a revolution,Todos can continue to fulfill its contract but only for a much higher price.United agrees to pay but later files a suit to recover the difference.The court will most likely rule that

A release bars any further recovery beyond the terms stated in the release.

Chris promises Doreen $40,000 if she graduates from Eagle College.Doreen enrolls in Eagle,attends full-time for four years,and graduates.When Doreen asks Chris for $40,000,Chris says,"I don't remember promising you $40,000.But if there was a promise,it's not enforceable,because we didn't bargain for it.And even if there was a promise that would otherwise be enforceable,I revoke it now." Can Doreen enforce Chris's "promise" Why or why not

Even if the terms of a contract express such certainty of performance that the promisor has not definitely promised to do anything,the promise binds the promisor.

Under the doctrine of promissory estoppel,a promise will not be enforced unless it is supported by consideration.

An obligation is enforceable only if it is made in return for actions or events that have already taken place.

In contract law,the term consideration refers to the serious thought that underlies a party's intent to enter into a contract.

Gustaf and Hilltop Country Club disagree as to the exact amount Hilltop owes Gustaf for his landscaping work.They form a new agreement that,on fulfillment,will discharge the prior obligation.This is

Henry promises not to open his Hank's Lunchbox Café before 10:00 A.m.if Isis,who owns Isis's Danish & Donuts next door,promises to close by 4:00 p.m.Henry's consideration is

Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes for $4.50 per month.Nate accepts.If a dispute arises,a court would likely

Genovese Contracting,Inc.,agrees to build a warehouse for Hawthorne Wholesale Distributors.When Genovese runs into the types of difficulties that contractors ordinarily confront,Hawthorne agrees to pay extra compensation to overcome them.Regarding the agreement to pay more,a court would likely

Qiana writes a check to Payday Loans,Inc.,in an amount that represents half of her debt to the lender.On the back of the check,Qiana includes the words "payment in full." Payday agrees to accept the lesser sum and cashes the check.This discharges the entire debt