Question 1

Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?

Accepted Answer

A)  Partial payment is consideration if a liquidated debt is involved.
B)  Partial payment is consideration if an exception applies to the general rule that partial payment is not consideration for an unliquidated debt.
C)  Partial payment is not consideration under any circumstances.
D)  Partial payment is consideration if an unliquidated debt is involved.
E)  Partial payment is consideration under all circumstances.F) All of the above
G) B) and D)

Question 2

Which of the following was involved when the government,in attempting to help AIG,agreed to lend AIG up to $85 billion in exchange for nearly 80 percent of AIG's stock?

Accepted Answer

A)  An accord but not a satisfaction
B)  An accord and satisfaction
C)  A bilateral contract
D)  An unliquidated contract
E)  A unilateral contractF) A) and E)
G) B) and D)

Question 3

In order for a contract to be enforceable,should the law require that consideration be in a similar amount to the item or services being transferred? Provide and explain your opinion.

Accepted Answer

Student responses will vary.It seems unf...

Question 4

In a bilateral contract,consideration for a promise is a completed act.

Accepted Answer

A) True 
 B)False

Question 5

Reasonable reliance on a promise is one of the requirements of promissory estoppel.

Accepted Answer

A) True 
 B)False

Question 6

In some cases,the court may enforce the promise if past consideration was given with expectation of future payment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following should be the result in regard to Isabella's obligation to Credit Card Company B?

Accepted Answer

A)  That because the car is worth only $1,000,nowhere near the amount of the debt,the company is released from its promise.
B)  That under equitable principles,upon disaffirming the agreement,Isabella may keep the car,and the company must take a deduction of 50% on all amounts due.
C)  That under equitable principles,upon disaffirming the agreement,Isabella must transfer the car to the company,and the company must take a deduction of 50% on all amounts due after sums received from the sale of the car are credited to Isabella's account.
D)  That because Isabella offered and the company accepted a different performance in discharge of the obligation,the company is bound.
E)  That the company is not bound by its promise because the debt was liquidated.F) A) and D)
G) A) and C)

Question 8

Which of the following is true regarding an accord and satisfaction?

Accepted Answer

A)  When amounts agreed upon are paid,the debt is fully discharged.
B)  When amounts agreed upon are paid,the debt is fully discharged except for any late charges and for any interest due on the initial indebtedness.
C)  When amounts agreed upon are paid,the debt is fully discharged except for any interest due on the initial indebtedness.
D)  When amounts agreed upon are paid,the debt is fully discharged except for any late charges or interest due on the initial indebtedness,or attorney fees of the creditor that are due.
E)  When amounts agreed upon are paid,the debt is fully discharged except for any late charges due on the initial indebtedness.F) A) and C)
G) C) and D)

Question 9

Which statement is true regarding illusory promises?

Accepted Answer

A)  Illusory promises are not consideration.
B)  Illusory promises qualify as consideration only when promissory estoppel is at issue.
C)  Illusory promises qualify as consideration only when past consideration is at issue.
D)  Illusory promises are consideration.
E)  Illusory promises are consideration only when a sale of goods is involved.F) B) and D)
G) C) and D)

Question 10

A promise to do something that you are already obligated to do is generally a valid consideration.

Accepted Answer

A) True 
 B)False

Question 11

Nina,an experienced pool contractor,and Charlie agree on a price for Nina to build a pool in Charlie's backyard.Nina discovers that she did not initially include a sufficient charge for labor in her original price.She informs Charlie that unless she receives an extra $5,000 with which to hire workers,she cannot complete the job.Charlie agrees,thinking to himself that he has a way out.When Nina finishes the pool,Charlie refuses to pay the additional $5,000.Which of the following is the most likely result of their dispute?

Accepted Answer

A)  Charlie will be required to pay because a typical,bilateral contract is involved,and he got the benefit of his bargain.
B)  Charlie will be required to pay because unforeseen circumstances are an exception to the preexisting duty rule.
C)  Charlie will only be required to pay ½ of the agreed upon amounts because of the calculations involved under the preexisting duty rule.
D)  Charlie will not be required to pay because he provided no additional consideration,and the preexisting duty rule applies.
E)  Charlie will be required to pay because a typical,unilateral contract is involved,and he got the benefit of his bargain.F) All of the above
G) A) and B)

Question 12

In a[n] ________ debt,there is no dispute about the fact that money is owed and the amount of money owed.

Accepted Answer

A)  Unliquidated
B)  Acknowledged
C)  Actual
D)  Liquidated
E)  CertainF) A) and B)
G) B) and C)

Question 13

[Garage Sale] While cleaning out his garage,Ezra offers to sell Mia a used computer for $200.Mia replies,"I'll think about it and buy it if I decide to do so." Ezra also calls Irina and offers to sell Irina a used business law book for $50.She asks if she can clean his apartment in exchange for the book,instead of paying cash,and he agrees.Ezra also agrees to sell a communications book for $5 to Tam,who promises to pick it up the next day.Meanwhile,Diego comes to visit and offers Ezra $45 for the business law book.Ezra sells it to him because he decides his apartment is clean enough.Diego also offers Ezra $50 for the used computer.Ezra sells it to Diego because he does not expect to hear from Mia.Diego sees the communications book and offers Ezra$45 for it.Ezra decides to forget about Tam and proceeds to sell the book to Diego for $45.The next day Irina shows up to clean Ezra's apartment and is very angry because Ezra did not save the book for her.Irina claims that Ezra breached their contract because they had a deal.Ezra says that they never had a deal because no consideration was present.He also says that even if cleaning house would be considered consideration,any housekeeping done would have been wholly inadequate to support receipt of the book because his house was already clean.Tam is also angry because Ezra sold the communications book,and informs him that he breached the contract he had with her.Ezra tells her that he had no obligation to hold the book for her because they had a unilateral contract.Two days after they first spoke,Mia tells Ezra that she would like the computer.She tells him that her response bound him and that he should have awaited her action.Ezra tells Diego that he needs to return everything for a full refund.Diego refuses.
-Which of the following is true regarding whether Ezra breached a contract with Mia?

Accepted Answer

A)  Ezra did not breach the contract,but Mia can recover based on promissory estoppel.
B)  Ezra did not breach the contract with Mia because it was for the sale of goods and,therefore,a typical contract.
C)  Ezra did not breach the contract with Mia because he waited a reasonable amount of time before selling the computer.
D)  Ezra breached the contract because he had an obligation to wait a reasonable length of time for Mia's response,and waiting only two days was not reasonable.
E)  Mia's statement created an illusory promise,which cannot be enforced.F) A) and D)
G) A) and E)

Question 14

[Bank Robbery] Safe Bank was robbed of a significant sum of cash by a robber later identified as Victor Victory.Safe Bank offered a reward of $10,000 to anyone who captured or provided information leading to the capture of Victor.Kareem,a police officer in town,promised Safe Bank officials that he would apprehend Victor.While on duty,Kareem arrested Victor at a restaurant in town.He found Victor after Ursula,Victor's girlfriend,told Kareem about various places Victor enjoyed eating.The bank refuses to pay either Ursula or Kareem any of the reward money.
-Which of the following is true regarding the offer of the reward?

Accepted Answer

A)  It pertained to a unilateral contract that could be accepted with consideration consisting of a promise.
B)  It pertained to a bilateral contract that could be accepted only with consideration consisting of a promise.
C)  It pertained to a bilateral contract that could be accepted with consideration consisting of a promise or performance.
D)  It pertained to a unilateral contract that could be accepted with consideration consisting of performance.
E)  It pertained to a bilateral contract that could be accepted only with consideration consisting of performance.F) B) and D)
G) B) and E)

Question 15

Which of the following is true of consideration?

Accepted Answer

A)  Consideration is not required in bilateral contracts
B)  Consideration is required in all contracts
C)  Consideration is not required in unilateral contracts
D)  Consideration is valid only if it is part of an equal exchange
E)  Consideration is never requiredF) A) and B)
G) B) and C)

Question 16

What will a person receive in return for performing a contract obligation?

Accepted Answer

A)  Accession
B)  Approval
C)  Consideration
D)  Accord
E)  AcknowledgementF) A) and E)
G) B) and D)

Question 17

Haruki's boss,Gabriel,tells him that because he has been such a valuable employee,he will receive an extra week of vacation.When Haruki decides to schedule the vacation,he reminds Gabriel of his statement.Gabriel says that he has changed his mind and that he really cannot afford to let Haruki have an extra week off.Haruki says that Gabriel has breached the contract he had with him for an extra vacation week.Assuming injustice cannot be established,who is right? Does a valid contract for an extra vacation week exist?

Accepted Answer

Gabriel is not required to all...

Question 18

Jack offers Selena his bicycle for $75.Which of the following is an example of an illusory promise on Selena's part?

Accepted Answer

A)  "I'll take it if you will buy new tires."
B)  "I won't pay $75,but I will pay $50."
C)  "I'll take it."
D)  "I'll take it if you will let me try it out first and the brakes work well."
E)  "I'll take it if I decide to do so."F) C) and E)
G) A) and E)

Question 19

Which statement is true regarding the adequacy of consideration?

Accepted Answer

A)  Courts consider the adequacy of consideration only if something is sold for less than 80% of its market value.
B)  Courts seldom consider the adequacy of consideration but will do so if fraud is involved.
C)  Courts consider the adequacy of consideration only if something is sold for less than 90% of its market value.
D)  Courts consider the adequacy of consideration only if something is sold for less than 70% of its market value.
E)  Courts generally consider the adequacy of consideration in determining whether to enforce a contract.F) B) and E)
G) A) and C)

Question 20

A promise to stop doing something in the future is not valid consideration.

Accepted Answer

A) True 
 B)False

Exam 15: Consideration

Correct Answer
verified

Jack offers Selena his bicycle for $75.Which of the following is an example of an illusory promise on Selena's part?

Correct Answer
verified

In a[n] ________ debt,there is no dispute about the fact that money is owed and the amount of money owed.

Correct Answer
verified

Which statement is true regarding the adequacy of consideration?

Correct Answer
verified

Reasonable reliance on a promise is one of the requirements of promissory estoppel.

Correct Answer
verified

Correct Answer
verified

What will a person receive in return for performing a contract obligation?

Correct Answer
verified

Correct Answer
verified
Gabriel is not required to all...
View Answer

In some cases,the court may enforce the promise if past consideration was given with expectation of future payment.

Correct Answer
verified

Which statement is true regarding illusory promises?

Correct Answer
verified

A promise to stop doing something in the future is not valid consideration.

Correct Answer
verified

Correct Answer
verified

Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?

Correct Answer
verified

Which of the following is true regarding an accord and satisfaction?

Correct Answer
verified

A promise to do something that you are already obligated to do is generally a valid consideration.

Correct Answer
verified

In a bilateral contract,consideration for a promise is a completed act.

Correct Answer
verified

Which of the following was involved when the government,in attempting to help AIG,agreed to lend AIG up to $85 billion in exchange for nearly 80 percent of AIG's stock?

Correct Answer
verified

Which of the following is true of consideration?

Correct Answer
verified

Which of the following should be the result in regard to Isabella's obligation to Credit Card Company B?

Correct Answer
verified

In order for a contract to be enforceable,should the law require that consideration be in a similar amount to the item or services being transferred? Provide and explain your opinion.

Correct Answer
verified
Student responses will vary.It seems unf...
View Answer

Exam 15: Consideration

Correct AnswerverifiedShow Answer

Jack offers Selena his bicycle for $75.Which of the following is an example of an illusory promise on Selena's part?

Correct AnswerverifiedShow Answer

In a[n] ________ debt,there is no dispute about the fact that money is owed and the amount of money owed.

Correct AnswerverifiedShow Answer

Which statement is true regarding the adequacy of consideration?

Correct AnswerverifiedShow Answer

Reasonable reliance on a promise is one of the requirements of promissory estoppel.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What will a person receive in return for performing a contract obligation?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedGabriel is not required to all...View AnswerShow Answer

In some cases,the court may enforce the promise if past consideration was given with expectation of future payment.

Correct AnswerverifiedShow Answer

Which statement is true regarding illusory promises?

Correct AnswerverifiedShow Answer

A promise to stop doing something in the future is not valid consideration.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?

Correct AnswerverifiedShow Answer

Which of the following is true regarding an accord and satisfaction?

Correct AnswerverifiedShow Answer

A promise to do something that you are already obligated to do is generally a valid consideration.

Correct AnswerverifiedShow Answer

In a bilateral contract,consideration for a promise is a completed act.

Correct AnswerverifiedShow Answer

Which of the following was involved when the government,in attempting to help AIG,agreed to lend AIG up to $85 billion in exchange for nearly 80 percent of AIG's stock?

Correct AnswerverifiedShow Answer

Which of the following is true of consideration?

Correct AnswerverifiedShow Answer

Which of the following should be the result in regard to Isabella's obligation to Credit Card Company B?

Correct AnswerverifiedShow Answer

In order for a contract to be enforceable,should the law require that consideration be in a similar amount to the item or services being transferred? Provide and explain your opinion.

Correct AnswerverifiedStudent responses will vary.It seems unf...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Gabriel is not required to all...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Student responses will vary.It seems unf...
View Answer