Question 1

A(n) ________ is a contract in which a buyer agrees to purchase all of its requirements for an item from one seller.

Accepted Answer

A)  option contract 
B)  requirements contract 
C)  best-efforts contract 
D)  output contract 
A)  option contract 
B)  requirements contract 
C)  best-efforts contract 
D)  output contract

Question 2

What is accord and satisfaction in contractual terms?

Accepted Answer

In some situations, one of the parties t

Question 3

Contracts based on illegal consideration are valid.

Accepted Answer

A) True 
 B)False

Question 4

Preexisting duty promise is unenforceable because of the introduction of a new consideration.

Accepted Answer

A) True 
 B)False

Question 5

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. What would this contract be an example of?

Accepted Answer

A)  requirements contract 
B)  output contract 
C)  option contract 
D)  yield contract 
A)  requirements contract 
B)  output contract 
C)  option contract 
D)  yield contract

Question 6

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away. Sharon agrees to do so, provided she has the time for it. What kind of contract do Mary and Sharon have?

Accepted Answer

A)  preexisting duty 
B)  past consideration 
C)  illegal consideration 
D)  illusory promise 
A)  preexisting duty 
B)  past consideration 
C)  illegal consideration 
D)  illusory promise

Question 7

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away. Sharon agrees to do so, provided she has the time for it. If Sharon fails to check the results and Mary wins the lottery, which of the following would be true of the contract between Mary and Sharon?

Accepted Answer

A)  Mary can claim for breach of contract against Sharon. 
B)  Sharon can claim for breach of contract against Mary. 
C)  Neither Mary nor Sharon can claim breach of contract. 
D)  Mary's promise is supported by consideration. 
A)  Mary can claim for breach of contract against Sharon. 
B)  Sharon can claim for breach of contract against Mary. 
C)  Neither Mary nor Sharon can claim breach of contract. 
D)  Mary's promise is supported by consideration.

Question 8

A promise is something of legal value given in exchange of a consideration.

Accepted Answer

A) True 
 B)False

Question 9

________ is an agreement whereby the parties agree to accept something different in satisfaction of the original contract.

Accepted Answer

A)  Counteroffer 
B)  Accord 
C)  Promissory estoppel 
D)  Mirror image acceptance 
A)  Counteroffer 
B)  Accord 
C)  Promissory estoppel 
D)  Mirror image acceptance

Question 10

Hartman, who worked for Aratize Inc. for 25 years, decides to retire. Upon hearing the news of his retirement, the president of Aratize announces a bonus of $250,000 to Hartman for his exceptional services toward Aratize thus far. But upon retiring, Hartman isn't paid the bonus. Hartman decides to sue the president and Aratize to recover the promised bonus. Which of the following is true in this case?

Accepted Answer

A)  It will be enforceable in court because it is a gift promise. 
B)  It will not be enforceable in court because of past consideration. 
C)  It will not be enforceable because the president is not authorized to make such a promise. 
D)  It will not be enforceable because it is an unlawful consideration. 
A)  It will be enforceable in court because it is a gift promise. 
B)  It will not be enforceable in court because of past consideration. 
C)  It will not be enforceable because the president is not authorized to make such a promise. 
D)  It will not be enforceable because it is an unlawful consideration.

Question 11

Promissory estoppels can be invoked for cases that include consideration.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is supported by consideration?

Accepted Answer

A)  written contract 
B)  gift promise 
C)  illusory promise 
D)  preexisting duty 
A)  written contract 
B)  gift promise 
C)  illusory promise 
D)  preexisting duty

Question 13

Which of the following is true of applying promissory estoppels to a contract?

Accepted Answer

A)  Both parties must suffer legal detriment. 
B)  Injustice would be caused if the promise were not enforced. 
C)  They can be applied for illusory promise contracts. 
D)  They can be applied for gift promise contracts. 
A)  Both parties must suffer legal detriment. 
B)  Injustice would be caused if the promise were not enforced. 
C)  They can be applied for illusory promise contracts. 
D)  They can be applied for gift promise contracts.

Question 14

A gift promise requires the promisee to provide consideration.

Accepted Answer

A) True 
 B)False

Question 15

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. Corey's promise falls under which of the following contracts?

Accepted Answer

A)  illegal consideration 
B)  illusory promise 
C)  preexisting duty 
D)  past consideration 
A)  illegal consideration 
B)  illusory promise 
C)  preexisting duty 
D)  past consideration

Exam 11: Consideration and Promissory Estoppel

A(n) ________ is a contract in which a buyer agrees to purchase all of its requirements for an item from one seller.

What is accord and satisfaction in contractual terms?

Contracts based on illegal consideration are valid.

Preexisting duty promise is unenforceable because of the introduction of a new consideration.

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away. Sharon agrees to do so, provided she has the time for it. What kind of contract do Mary and Sharon have?

A promise is something of legal value given in exchange of a consideration.

________ is an agreement whereby the parties agree to accept something different in satisfaction of the original contract.

Promissory estoppels can be invoked for cases that include consideration.

Which of the following is supported by consideration?

Which of the following is true of applying promissory estoppels to a contract?

A gift promise requires the promisee to provide consideration.

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. Corey's promise falls under which of the following contracts?

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