Question 1

A conditional promise is a promise the performance of which depends upon the happening or nonhappening of an event not certain to occur.

Accepted Answer

A) True 
 B)False

Question 2

Carlos ordered an aluminum storm door for $249.99.Before it was delivered, the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99.Carlos calls the store and demands the advertised price.If the store agrees:

Accepted Answer

A)  Carlos must pay $179.99.
B)  Carlos must pay $249.99.
C)  there is no contract.
D)  there is a contract for the reasonable value of the door.E) C) and D)
F) B) and D)

Question 3

The Restatement provides that a promise following the rendering of emergency services is binding even if not supported by consideration if necessary to prevent injustice.

Accepted Answer

A) True 
 B)False

Question 4

Barbara, a wealthy widow, promises the pastor of her church that she will donate $20,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $80,000 mortgage.Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead.In this case:

Accepted Answer

A)  the doctrine of promissory estoppel can be applied.
B)  the promise to pay $20,000 is a promise to give a gift and is therefore not enforceable.
C)  under the Restatement, Barbara's promise is enforceable only if it is in writing.
D)  Barbara's promise is not enforceable because the church did not give consideration.E) B) and C)
F) A) and B)

Question 5

Contracts generally require adequacy of consideration where the consideration given by both parties is of fair value and equitable.

Accepted Answer

A) True 
 B)False

Question 6

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.E) All of the above
F) A) and B)

Question 7

Pablo promises to sell to Candice an automobile for $12,000, for which Candice promises $12,000.A bilateral contract exists.

Accepted Answer

A) True 
 B)False

Question 8

In a bilateral contract, if one party is not bound, neither party is bound.

Accepted Answer

A) True 
 B)False

Question 9

Fran negligently drove her truck through Nick's fence, causing damage.If she promises to pay Nick $1,500 if he does not bring a lawsuit against her, Nick accepts and forms a unilateral contract by not filing suit.His forbearance is consideration.

Accepted Answer

A) True 
 B)False

Question 10

An agreement to sell the entire production of a particular plant to a particular purchaser is a requirements contract.

Accepted Answer

A) True 
 B)False

Question 11

A unilateral contract may consist of a promise exchanged for an act or forbearance.

Accepted Answer

A) True 
 B)False

Question 12

In a unilateral contract, a promise is exchanged for an act or forbearance to act.

Accepted Answer

A) True 
 B)False

Question 13

Consideration:

Accepted Answer

A)  must be given by the promisee to the promisor.
B)  must be adequate.
C)  may be given to the promisor or to some other person by the promisee or by some other person.
D)  need not be equal between the parties, but must be proportionate.E) B) and D)
F) C) and D)

Question 14

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is enforceable without consideration?

Accepted Answer

A)  A new promise to pay a debt barred by the statute of limitations.
B)  An illusory promise.
C)  Under the common law, a promise made to satisfy a preexisting moral obligation.
D)  A promise by a father to pay someone for rendering emergency services to his injured son before the father had arrived at the accident scene.E) B) and C)
F) A) and D)

Question 16

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.E) A) and D)
F) B) and C)

Question 17

Alice says to Brian, "If I decide to buy a word processor 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.E) All of the above
F) A) and C)

Question 18

Jason's mother would like him to go to college, so in June he enrolls at State University.He also quits his job and tells his mother his plans to continue taking 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.Which of the following is true regarding his mother's promise?

Accepted Answer

A)  It is enforceable, because Jason returned to college.
B)  It is enforceable, because Jason is giving up the right to do something else.
C)  It is unenforceable, because it is a unilateral contract.
D)  It is unenforceable, because Jason had already enrolled in school and there is no consideration.E) C) and D)
F) A) and D)

Question 19

Which of the following would most likely be enforceable?

Accepted Answer

A)  An agreement supported by past consideration
B)  A substitute agreement to settle an undisputed debt
C)  A debt agreed to seven years ago in a state where the statute of limitations is six years
D)  A promise following the rendering of emergency services that is not supported by new considerationE) A) and B)
F) B) and D)

Question 20

Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road.After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog.Marnie's promise is binding, because there is a bargained-for-exchange.

Accepted Answer

A) True 
 B)False

Exam 12: Consideration

In a unilateral contract, a promise is exchanged for an act or forbearance to act.

Correct Answer
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Which of the following would most likely be enforceable?

Correct Answer
verified

Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road.After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog.Marnie's promise is binding, because there is a bargained-for-exchange.

Correct Answer
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Consideration:

Correct Answer
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Correct Answer
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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?

Correct Answer
verified

Pablo promises to sell to Candice an automobile for $12,000, for which Candice promises $12,000.A bilateral contract exists.

Correct Answer
verified

A conditional promise is a promise the performance of which depends upon the happening or nonhappening of an event not certain to occur.

Correct Answer
verified

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

Correct Answer
verified

The Restatement provides that a promise following the rendering of emergency services is binding even if not supported by consideration if necessary to prevent injustice.

Correct Answer
verified

Contracts generally require adequacy of consideration where the consideration given by both parties is of fair value and equitable.

Correct Answer
verified

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Correct Answer
verified

Which of the following is enforceable without consideration?

Correct Answer
verified

In a bilateral contract, if one party is not bound, neither party is bound.

Correct Answer
verified

An agreement to sell the entire production of a particular plant to a particular purchaser is a requirements contract.

Correct Answer
verified

Carlos ordered an aluminum storm door for $249.99.Before it was delivered, the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99.Carlos calls the store and demands the advertised price.If the store agrees:

Correct Answer
verified

Correct Answer
verified

A unilateral contract may consist of a promise exchanged for an act or forbearance.

Correct Answer
verified

Fran negligently drove her truck through Nick's fence, causing damage.If she promises to pay Nick $1,500 if he does not bring a lawsuit against her, Nick accepts and forms a unilateral contract by not filing suit.His forbearance is consideration.

Correct Answer
verified

Correct Answer
verified

Exam 12: Consideration

In a unilateral contract, a promise is exchanged for an act or forbearance to act.

Correct AnswerverifiedShow Answer

Which of the following would most likely be enforceable?

Correct AnswerverifiedShow Answer

Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road.After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog.Marnie's promise is binding, because there is a bargained-for-exchange.

Correct AnswerverifiedShow Answer

Consideration:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Pablo promises to sell to Candice an automobile for $12,000, for which Candice promises $12,000.A bilateral contract exists.

Correct AnswerverifiedShow Answer

A conditional promise is a promise the performance of which depends upon the happening or nonhappening of an event not certain to occur.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Restatement provides that a promise following the rendering of emergency services is binding even if not supported by consideration if necessary to prevent injustice.

Correct AnswerverifiedShow Answer

Contracts generally require adequacy of consideration where the consideration given by both parties is of fair value and equitable.

Correct AnswerverifiedShow Answer

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Correct AnswerverifiedShow Answer

Which of the following is enforceable without consideration?

Correct AnswerverifiedShow Answer

In a bilateral contract, if one party is not bound, neither party is bound.

Correct AnswerverifiedShow Answer

An agreement to sell the entire production of a particular plant to a particular purchaser is a requirements contract.

Correct AnswerverifiedShow Answer

Carlos ordered an aluminum storm door for $249.99.Before it was delivered, the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99.Carlos calls the store and demands the advertised price.If the store agrees:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A unilateral contract may consist of a promise exchanged for an act or forbearance.

Correct AnswerverifiedShow Answer

Fran negligently drove her truck through Nick's fence, causing damage.If she promises to pay Nick $1,500 if he does not bring a lawsuit against her, Nick accepts and forms a unilateral contract by not filing suit.His forbearance is consideration.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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