Question 1

Forbearance occurs when:

Accepted Answer

A)  a debtor and two or more creditors agree to accept a stated percentage of their liquidated claims against the debtor. 
B)  someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration. 
C)  promises are worded in a way that allows the promisor to decide whether or not to perform the promise. 
D)  there is no dispute about the existence or the amount of the debt. 
A)  a debtor and two or more creditors agree to accept a stated percentage of their liquidated claims against the debtor. 
B)  someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration. 
C)  promises are worded in a way that allows the promisor to decide whether or not to perform the promise. 
D)  there is no dispute about the existence or the amount of the debt.

Question 2

If Khalid agrees to sell his house to Lalita for $300,000 a property which is actually worth $410,000, _____.

Accepted Answer

A)  Lalita can recover damages for breach of contract if Khalid refuses to perform 
B)  Lalita will be able to get a court order for the specific performance of Khalid's promise 
C)  Khalid is not entitled to equitable remedies 
D)  Lalita cannot recover damages for breach of contract 
A)  Lalita can recover damages for breach of contract if Khalid refuses to perform 
B)  Lalita will be able to get a court order for the specific performance of Khalid's promise 
C)  Khalid is not entitled to equitable remedies 
D)  Lalita cannot recover damages for breach of contract

Question 3

If Kate promises a stereo system to Uli, which of the following holds true with regard to the idea of consideration?

Accepted Answer

A)  Uli will not be able to enforce Kate's promise if he has not done anything in return. 
B)  Uli has to perform an act in return for Kate's promise. 
C)  Kate's promise should not be supported by consideration. 
D)  Uli's consideration should be an act and not a promise. 
A)  Uli will not be able to enforce Kate's promise if he has not done anything in return. 
B)  Uli has to perform an act in return for Kate's promise. 
C)  Kate's promise should not be supported by consideration. 
D)  Uli's consideration should be an act and not a promise.

Question 4

Which of the following statements is true about the modification of an existing contract under the Uniform Commercial Code?

Accepted Answer

A)  Agreements to modify contracts for the sale of goods need consideration to be binding. 
B)  If the price of the goods in a modified agreement is $500 or more, the modification is enforceable. 
C)  There is no duty to agree to a modification. 
D)  There is no legal prohibition against agreements that result from coercion. 
A)  Agreements to modify contracts for the sale of goods need consideration to be binding. 
B)  If the price of the goods in a modified agreement is $500 or more, the modification is enforceable. 
C)  There is no duty to agree to a modification. 
D)  There is no legal prohibition against agreements that result from coercion.

Question 5

If the amount of a debt is "due and certain," _____.

Accepted Answer

A)  a promise to pay less than the amount lacks consideration 
B)  the debt is considered to be an unliquidated one 
C)  there is a dispute about the existence of the debt 
D)  there is a dispute about the amount of the debt 
A)  a promise to pay less than the amount lacks consideration 
B)  the debt is considered to be an unliquidated one 
C)  there is a dispute about the existence of the debt 
D)  there is a dispute about the amount of the debt

Question 6

_____ are worded in a way that allows the promisor to decide whether or not to perform the promise.

Accepted Answer

A)  Novations 
B)  Compositor promises 
C)  Illusory promises 
D)  Modifications 
A)  Novations 
B)  Compositor promises 
C)  Illusory promises 
D)  Modifications

Question 7

Vladimir Constructions contracted to build the Petersons a house for $50,000. When Vladimir began digging the foundation, it hit bedrock, which was highly unusual in that area. Vladimir told the Petersons that it required an extra $5,000 to build the house. The Petersons agreed, but when the house was done, refused to pay Vladimir any more than the original contract price. What can be the outcome if Vladimir sues the Petersons for the extra $5,000 and why?

Accepted Answer

Students' answers may vary. Generally, m

Question 8

Suppose Bill promises to pay Mike, the school bully, $2 per week for "protection" in exchange for Mike's promise not to beat up Bill. Bill refuses to pay. Bill's promise is enforceable because it is supported by consideration.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true of consideration?

Accepted Answer

A)  Consideration always has a monetary value regardless of a legal value. 
B)  A promisee can be forced by the courts to keep his or her promise. 
C)  Consideration enforces gratuitous promises. 
D)  A promisee's consideration may be an act or a promise. 
A)  Consideration always has a monetary value regardless of a legal value. 
B)  A promisee can be forced by the courts to keep his or her promise. 
C)  Consideration enforces gratuitous promises. 
D)  A promisee's consideration may be an act or a promise.

Question 10

In a bilateral contract, a promisee's consideration is a return promise.

Accepted Answer

A) True 
 B)False

Exam 12: Consideration

Forbearance occurs when:

If Khalid agrees to sell his house to Lalita for $300,000 a property which is actually worth $410,000, _____.

If Kate promises a stereo system to Uli, which of the following holds true with regard to the idea of consideration?

Which of the following statements is true about the modification of an existing contract under the Uniform Commercial Code?

If the amount of a debt is "due and certain," _____.

_____ are worded in a way that allows the promisor to decide whether or not to perform the promise.

Suppose Bill promises to pay Mike, the school bully, $2 per week for "protection" in exchange for Mike's promise not to beat up Bill. Bill refuses to pay. Bill's promise is enforceable because it is supported by consideration.

Which of the following statements is true of consideration?

In a bilateral contract, a promisee's consideration is a return promise.

Law, Legal Reasoning, and the Legal Profession

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