Question 1

Examples of illusory promises include:

Accepted Answer

A)  cancellation provisions.
B)  conditional promises.
C)  apparent obligations.
D)  real obligations. C

Question 2

Gerwin's daughter Mary was seeking a position as an associate attorney with Baker, Charles & Dixon, a large metropolitan law firm. The firm, after several meetings with Mary over a two-month period, made Mary an offer of employment on January 15. Mary accepted the offer that day and immediately left for Cape Cod to celebrate without telling Gerwin or anyone else about her new job.
On January 17, two days after Mary had accepted the offer, Gerwin sent Baker, Charles & Dixon a letter in which she offered to give Baker all of her legal business (approximately $40,000 per year) if the law firm would hire Mary. The law firm accepted.
After Gerwin learned that Mary already had been hired by Baker, Charles & Dixon, Gerwin refused to transfer her business to the law firm. The law firm has brought suit against Gerwin on the grounds that a valid contract exists between them. How will the case be decided?

Accepted Answer

Judgment will be for Gerwin. A binding c...

Question 3

An agreement to pay reasonable additional compensation to a contractor for the performance of a pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:

Accepted Answer

A)  good-faith adjustment.
B)  bribe.
C)  compensatory allowance.
D)  relief payment. A

Question 4

With regard to an unliquidated debt, payment by the debtor of less than the amount claimed by the creditor is consideration for the latter's agreement to release or settle the claim.

Accepted Answer

A) True 
 B)False

Question 5

Past benefits already received by a promisor cannot be consideration for a later promise.

Accepted Answer

A) True 
 B)False

Question 6

A binding contract cannot contain a cancellation provision.

Accepted Answer

A) True 
 B)False

Question 7

Will the law enforce every promise?

Accepted Answer

A)  Yes.
B)  Yes, with or without consideration.
C)  Generally yes, if consideration is given for the promise.
D)  None of the above.

Question 8

The promise of a creditor to refrain from collecting a debt is consideration for a promise by the debtor to modify the terms of the transaction.

Accepted Answer

A) True 
 B)False

Question 9

In a contract for the sale of goods, any modification made by the parties to the contract must be supported by consideration to be binding.

Accepted Answer

A) True 
 B)False

Question 10

Under the doctrine of promissory estoppel, a promisor may be prevented from asserting that his or her promise is unenforceable because the promisee gave no consideration for the promise.

Accepted Answer

A) True 
 B)False  True

Question 11

Ordinarily, doing or promising to do what one is already under a legal obligation to do is not consideration.

Accepted Answer

A) True 
 B)False

Question 12

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to a part payment made in satisfaction of a(n)  __________ debt.

Accepted Answer

A)  unliquidated
B)  superfluous
C)  non-superfluous
D)  liquidated

Question 13

Consideration is the bargained-for exchange between the parties to a contract.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not consideration for a present promise?

Accepted Answer

A)  a return promise
B)  forbearance
C)  the promise to pay one's child support obligation, consistent with a pre-existing court order.
D)  the performance of a requested act

Question 15

One promise may serve as consideration for many return promises.

Accepted Answer

A) True 
 B)False

Question 16

Consideration always must be an act or the promise to perform an act.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following can be consideration for a promise?

Accepted Answer

A)  refraining from beating one's spouse
B)  promising to refrain from beating one's spouse
C)  refraining from smoking cigarettes
D)  refraining from using cocaine

Question 18

In most states, promises made to another based on moral obligation lack consideration and are not enforceable.

Accepted Answer

A) True 
 B)False

Question 19

Courts will consider the adequacy of the consideration when:

Accepted Answer

A)  one party clearly has the better of the deal.
B)  one party has more business experience than the other.
C)  one party claims to have been defrauded.
D)  one party shows a much lower price nationally-advertised on television.

Question 20

Consideration is not required in:

Accepted Answer

A)  contracts for the sale of goods.
B)  employment contracts.
C)  agreements to modify employment contracts.
D)  agreements to modify contracts for the sale of goods.

Exam 15: Consideration

Examples of illusory promises include:

Correct Answer
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C

Correct Answer
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Judgment will be for Gerwin. A binding c...
View Answer

An agreement to pay reasonable additional compensation to a contractor for the performance of a pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:

Correct Answer
verified
A

With regard to an unliquidated debt, payment by the debtor of less than the amount claimed by the creditor is consideration for the latter's agreement to release or settle the claim.

Correct Answer
verified

Past benefits already received by a promisor cannot be consideration for a later promise.

Correct Answer
verified

A binding contract cannot contain a cancellation provision.

Correct Answer
verified

Will the law enforce every promise?

Correct Answer
verified

The promise of a creditor to refrain from collecting a debt is consideration for a promise by the debtor to modify the terms of the transaction.

Correct Answer
verified

In a contract for the sale of goods, any modification made by the parties to the contract must be supported by consideration to be binding.

Correct Answer
verified

Under the doctrine of promissory estoppel, a promisor may be prevented from asserting that his or her promise is unenforceable because the promisee gave no consideration for the promise.

Correct Answer
verified
True

Ordinarily, doing or promising to do what one is already under a legal obligation to do is not consideration.

Correct Answer
verified

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to a part payment made in satisfaction of a(n) __________ debt.

Correct Answer
verified

Consideration is the bargained-for exchange between the parties to a contract.

Correct Answer
verified

Which of the following is not consideration for a present promise?

Correct Answer
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One promise may serve as consideration for many return promises.

Correct Answer
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Consideration always must be an act or the promise to perform an act.

Correct Answer
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Which of the following can be consideration for a promise?

Correct Answer
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In most states, promises made to another based on moral obligation lack consideration and are not enforceable.

Correct Answer
verified

Courts will consider the adequacy of the consideration when:

Correct Answer
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Consideration is not required in:

Correct Answer
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Exam 15: Consideration

Examples of illusory promises include:

Correct AnswerverifiedC

Correct AnswerverifiedJudgment will be for Gerwin. A binding c...View AnswerShow Answer

An agreement to pay reasonable additional compensation to a contractor for the performance of a pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:

Correct AnswerverifiedA

With regard to an unliquidated debt, payment by the debtor of less than the amount claimed by the creditor is consideration for the latter's agreement to release or settle the claim.

Correct AnswerverifiedShow Answer

Past benefits already received by a promisor cannot be consideration for a later promise.

Correct AnswerverifiedShow Answer

A binding contract cannot contain a cancellation provision.

Correct AnswerverifiedShow Answer

Will the law enforce every promise?

Correct AnswerverifiedShow Answer

The promise of a creditor to refrain from collecting a debt is consideration for a promise by the debtor to modify the terms of the transaction.

Correct AnswerverifiedShow Answer

In a contract for the sale of goods, any modification made by the parties to the contract must be supported by consideration to be binding.

Correct AnswerverifiedShow Answer

Under the doctrine of promissory estoppel, a promisor may be prevented from asserting that his or her promise is unenforceable because the promisee gave no consideration for the promise.

Correct AnswerverifiedTrue

Ordinarily, doing or promising to do what one is already under a legal obligation to do is not consideration.

Correct AnswerverifiedShow Answer

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to a part payment made in satisfaction of a(n) __________ debt.

Correct AnswerverifiedShow Answer

Consideration is the bargained-for exchange between the parties to a contract.

Correct AnswerverifiedShow Answer

Which of the following is not consideration for a present promise?

Correct AnswerverifiedShow Answer

One promise may serve as consideration for many return promises.

Correct AnswerverifiedShow Answer

Consideration always must be an act or the promise to perform an act.

Correct AnswerverifiedShow Answer

Which of the following can be consideration for a promise?

Correct AnswerverifiedShow Answer

In most states, promises made to another based on moral obligation lack consideration and are not enforceable.

Correct AnswerverifiedShow Answer

Courts will consider the adequacy of the consideration when:

Correct AnswerverifiedShow Answer

Consideration is not required in:

Correct AnswerverifiedShow Answer

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C

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Judgment will be for Gerwin. A binding c...
View Answer

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A

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True

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