Question 1

Jason's mother would like him to go to college, so in June he enrolls at the local university. He also quits his job and tells his mother his plans to take classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Jason's mother's promise is:

Accepted Answer

A)  enforceable, because Jason returned to college. 
B)  enforceable, because Jason is giving up the right to do something else. 
C)  unenforceable, because it is a unilateral contract. 
D)  unenforceable, because Jason had already enrolled in school when she made the statement that she wanted to pay for his books, and there is no consideration.

Question 2

Herb promises to give his nephew, Curt, his old TV when the new one he ordered arrives. Explain whether this promise is enforceable, and include in your discussion the concept of "bargained-for exchange."

Accepted Answer

The answer of Herb promises to give his nephew, Curt,...

Question 3

Exclusive dealing contracts are illegal and therefore always void.

Accepted Answer

A) True 
 B)False

Question 4

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible?

Accepted Answer

A)  The employees of the bank. 
B)  An on-duty sheriff's deputy in the county where the arrest occurred. 
C)  An off-duty deputy sheriff from a county other than the one where the arrest occurred. 
D)  None of these are eligible.

Question 5

Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.

Accepted Answer

A) True 
 B)False

Question 6

A promisee's consideration is effective only if given directly to the promisor by the promisee.

Accepted Answer

A) True 
 B)False

Question 7

Clint contests the amount of a bill he received from Car Care Specialists. Under the Restatement, settlement of the claim:

Accepted Answer

A)  is not valid consideration. 
B)  is not a legal detriment to Clint if his contentions were not made in good faith. 
C)  is valid consideration if at the time of the settlement the claim was doubtful because of uncertainty as to the facts. 
D)  does not involve a disputed debt unless Clint contests both the existence of the obligation and the amount of the bill.

Question 8

William agrees to drill a well up to 200-feet deep for John's rural cabin. The contract price is $3,000. After drilling 100 feet, William strikes solid granite rock. He talks to John and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract. He offers to get a special drill, but says it will cost him more money, so that he will be unable to complete the project for the agreed price. Because John is anxious to have the well, he agrees to pay William an additional $1,000 to complete the job. However, once the well is finished, he changes his mind and now says he will pay only the originally agreed-upon amount. What is the result?

Accepted Answer

A)  The parties have agreed to a substitute contract which discharges the original contract. John is obligated to pay the additional $1,000. 
B)  The agreement for $4,000 is binding because of provisions of the UCC. 
C)  William is in breach of contract. John need not pay any additional money. 
D)  William is under a pre-existing moral duty to perform at the originally agreed-upon price.

Question 9

Exclusive dealing contracts are binding because sufficient consideration is present.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not correct with regard to consideration?

Accepted Answer

A)  In a unilateral contract, a promise is exchanged for an act or forbearance to act. 
B)  In a bilateral contract, there is an exchange of promises. 
C)  Legal sufficiency is always related to adequacy of consideration. 
D)  Consideration can be a legal detriment.

Question 11

Define legal detriment.

Accepted Answer

The answer of Define legal detriment....

Question 12

Alice says to Brian, "If I decide to buy a digital camera next year, I will buy it from you." This is an example of:

Accepted Answer

A)  an illusory promise. 
B)  past consideration. 
C)  the pre-existing duty rule. 
D)  good consideration.

Question 13

Which of the following would not be a promise statutorily made enforceable without consideration?

Accepted Answer

A)  Hawkins, in good faith, changes the quantity of square yards of carpet ordered from Grant Mills. 
B)  Jones promises to pay his cousin's past-due cell phone bill. 
C)  Dodds signs and delivers a waiver of a claim arising out of a breach of contract by Keys. 
D)  A signed, written offer by Marcum Jewelers to sell four dozen 18" gold chains to the Alpha Sorority for $480 within the next 30 days.

Question 14

If Marguarite promises to pay Neal $300 not to defame her, the promise is unenforceable because tort law imposes a preexisting obligation on Neal to refrain from such an act.

Accepted Answer

A) True 
 B)False

Question 15

James promises to pay Brooke $2,500 if she does not sue him for negligently injuring her in a bicycle accident. If Brooke does not sue, James's promise to pay is binding because it is supported by consideration.

Accepted Answer

A) True 
 B)False

Question 16

The performance of a pre-existing contractual duty which is neither doubtful nor the subject of an honest dispute is legally sufficient consideration to support a second contract.

Accepted Answer

A) True 
 B)False

Question 17

"Consideration" requires an actual benefit to both sides of an agreement.

Accepted Answer

A) True 
 B)False

Question 18

Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain.

Accepted Answer

A) True 
 B)False

Question 19

Marilyn contracted with Bravo Builders to build an addition to her house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Marilyn agrees, which of the following is correct?

Accepted Answer

A)  Marilyn will have to pay $20,000. 
B)  This is a contract under seal which is enforceable. 
C)  This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders. 
D)  This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders.

Question 20

An output contract is a special form of an illusory contract.

Accepted Answer

A) True 
 B)False

Exam 12: Consideration

Herb promises to give his nephew, Curt, his old TV when the new one he ordered arrives. Explain whether this promise is enforceable, and include in your discussion the concept of "bargained-for exchange."

Exclusive dealing contracts are illegal and therefore always void.

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible?

Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.

A promisee's consideration is effective only if given directly to the promisor by the promisee.

Clint contests the amount of a bill he received from Car Care Specialists. Under the Restatement, settlement of the claim:

Exclusive dealing contracts are binding because sufficient consideration is present.

Which of the following is not correct with regard to consideration?

Define legal detriment.

Alice says to Brian, "If I decide to buy a digital camera next year, I will buy it from you." This is an example of:

Which of the following would not be a promise statutorily made enforceable without consideration?

If Marguarite promises to pay Neal $300 not to defame her, the promise is unenforceable because tort law imposes a preexisting obligation on Neal to refrain from such an act.

James promises to pay Brooke $2,500 if she does not sue him for negligently injuring her in a bicycle accident. If Brooke does not sue, James's promise to pay is binding because it is supported by consideration.

The performance of a pre-existing contractual duty which is neither doubtful nor the subject of an honest dispute is legally sufficient consideration to support a second contract.

"Consideration" requires an actual benefit to both sides of an agreement.

Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain.

An output contract is a special form of an illusory contract.