Exam 11: Consideration and Promissory Estoppel

A contract is considered to be supported by legal value if the promisor suffers a legal detriment.

Once an accord has been reached, the original contract cannot be enforced under any circumstance.

Poweroxi Inc. produces rocket propellant fuel that is used in space shuttles. NASA is an agency that requires rocket propellant fuel to send its rockets to space. NASA enters into a contract with Poweroxi Inc. to purchase all of the propellant fuel it will need that year from Poweroxi. Which of the following conditions would constitute a breach in contract?

Which of the following is true of a buyer with an output contract?

A gift promise is enforceable if the promisor withdraws from his promise.

James had a contract with Frasier to fix a plumbing issue at Frasier's home. The contract was made for $3,000. After the work was completed, Frasier then refused to pay anything unless James agreed to accept $2,500. James's attempt to make a new contract is void because it lacks consideration under the ________ concept.

A requirements contract is unenforceable due to lack of consideration.

James had a contract with Frasier to fix a plumbing issue at Frasier's home. The contract was made for $3,000. After the work was completed, Frasier then refused to pay anything unless James agreed to accept $2,500. In the above scenario, to avoid legal nuisance, Frasier decides to compromise with James. He asks James to fix a tap in the barn for $250, and modify the current contract to include the tap in the barn. James agrees to this, and does as asked while Frasier remakes the contract. Which of the following would this kind of settlement be referred to as?

________ is a promise to refrain from doing an unlawful act, and therefore is a promise that will not support a contract.

If the accord is performed, it is called a satisfaction.

With regard to unenforceable contracts, an extortion call in which a man agrees to pay money in return for his family's safety would be considered as a(n) ________.

A consideration need not be of legal value to be enforceable.

An accord is a compromise reached between two parties to settle a claim.

Which of the following is true of a promissory estoppel?

AtlasNow Construction Company, a general contractor, plans to place a bid for building a hospital. It requests bids from subcontractors for plumbing and other construction related services that will be needed for building the hospital. Catapipes Plumbing Company, a plumbing subcontractor, submits the lowest bid for the plumbing work, and AtlasNow incorporates Catapipes's low bid in its own bid for the general contract. Based on all of the subcontractors' bids, AtlasNow submits the lowest overall bid to build the hospital and is awarded the contract. Which of the following conditions is required for the two companies to enter into a legally enforceable contract?

Under which of the following conditions can one convert a gift promise into an enforceable promise?

A contract is said to have legal value if ________.

A promissory estoppel is usually used to provide a remedy to a party who has relied on another party's promise.

A new promise can include a past consideration for it to be enforceable.

Mark, who recently won a lottery, tells Sean that he will split his lottery winnings with him if Sean can arrange Mark's interview with his boss. Sean talks to his boss and the meeting is arranged. But when Sean goes to collect half of Mark's lottery winnings, Mark refuses to pay. What is the act of consideration in this scenario?