Exam 11: Consideration and Promissory Estoppel

________ is an equity doctrine that permits a court to order enforcement of a contract that lacks consideration.

Forbearance of a legal right can be provided as consideration.

A completed gift promise cannot be rescinded for lack of consideration.

Why does an illusory contract lack consideration?

If a contract that was lacking in consideration is performed by the parties, the parties cannot subsequently assert lack of consideration to undo the performed contract.

Considerations can only be monetary or economic in nature.

An out-of-court settlement in exchange for dropping a lawsuit is an example of consideration.

Explain the preexisting duty principle in private sector contracts.

Dean Campenella is a detective with the California state police. During the investigation of a missing child, Campenella found new clues that led to the capture of a serial killer involved in another case. Since Campenella was not involved in the serial killer case, and found the clues while investigating another case, Campenella demanded a special reward from the state police department for his help in catching the killer. But his demand was declined citing lack of consideration. Campenella's demand lacks consideration under which of the following?

Contracts falling under past consideration are unenforceable.

A contract into which both parties enter but in which one or both of the parties can choose not to perform their contractual obligations is known as ________.

Illusory promises are enforceable if one of the parties has performed their contractual obligation.

If the accord is not satisfied, the other party can sue to enforce the accord.

An accord is enforceable even though no new consideration is given.

Toughones, a car part manufacturer, signed a contract to license computer software from Vizera Inc. for $250,000. This software is to be used to keep track of inventory, accounts receivable, and other financial data. After the software was installed, the computer system worked, but it had a few glitches. Toughones refused to pay the full amount mentioned in the contract. To settle the dispute, the parties agree that $180,000 is to be paid as full and final payment for the software. Toughones paid $180,000 as agreed. What kind of agreement did Toughones and Vizera reach in the end?

Imposition of the best-efforts duty provides sufficient consideration to make a contract enforceable.

Under which of the following conditions is a contract said to have legal value?

Corey in a desperate need to get to the airport decides to take his neighbor Tanner's help. Tanner agrees to help and drives Corey to the airport. Upon arrival at the airport, Corey promises to pay Tanner $25 for the gas fill. Which of the following conditions would have made the contract between Corey and Tanner enforceable?

Which of the following is true of an accord?

Which of the following is true of a gift promise?