Term
Consideration is the primary basis for the enforcement of promises in our legal system.
A. True
B. False |
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Definition
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Term
Consideration, or whatever is exchanged for a promise, exists when the parties only intended an exchange.
A. True
B. False |
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Definition
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Term
To receive a legal benefit means that the object of the consideration is not an illegal act or object.
A. True
B. False |
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Definition
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Term
Legal sufficiency is another way of saying that the market value of the act, forbearance, or thing bargained for is adequate.
A. True
B. False |
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Definition
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Term
Which of the following statements is true regarding moral obligations and their relationship to the element of consideration in valid contracts?
A. Under the common law a promise made to give value for a pre-existing moral obligation is enforceable.
B. A minority of states give considerable recognition to moral obligations as a form of consideration.
C. Under the Restatement, the courts treat pre-existing moral obligations as they do past consideration.
D. The common law and the Restatement follow the same rule regarding moral obligations and their relationship to the element of consideration. |
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Definition
| B. A minority of states give considerable recognition to moral obligations as a form of consideration. |
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Term
Mark promises Tom $5,000 for one of his original oil paintings on the condition that he receives $2 million from his mother's will.
A. Mark has made a promise that is legally sufficient.
B. Mark's promise is legally inadequate, and the courts will therefore not enforce it.
C. Mark has made an illusory promise.
D. Mark has made a conditional promise, which is not sufficient to form consideration. |
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Definition
| A. Mark has made a promise that is legally sufficient. |
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Term
George says to Edna, "If I decide to have the bathroom redone, I will contract with your company to do it." George's statement to Edna is an example of:
A. good consideration.
B. an illusory promise.
C. a pre-existing duty.
D. past consideration. |
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Definition
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Term
Which of the following would not be enforceable without consideration?
A. A promise to pay a debt barred by the statute of limitations.
B. A promise to pay a debt discharged in bankruptcy where the promise meets the requirements of the Bankruptcy Act.
C. A promise which falls within the doctrine of promissory estoppel.
D. The settlement of an undisputed debt. |
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Definition
| D. The settlement of an undisputed debt. |
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Term
Which of the following promises would not be enforceable without consideration?
A. A charitable subscription promise.
B. Modifications of an existing contract for goods of $500 or more.
C. A modification of an existing contract at common law.
D. A written offer made and signed by a merchant to keep open an offer open for a stated time period, not to exceed three months. |
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Definition
| C. A modification of an existing contract at common law. |
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Term
The following statement is true about renunciation:
A. Renunciation is a common law doctrine created to, without any consideration, waive claims arising from a breach of contract.
B. Renunciation is a form of consideration under the Code.
C. Under the Uniform Commercial Code, renunciation is a written waiver of a claim or right arising from a breach of contract that is signed and delivered by the aggrieved party.
D. Under the Uniform Commercial Code, a renunciation can be oral. |
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Definition
| C. Under the Uniform Commercial Code, renunciation is a written waiver of a claim or right arising from a breach of contract that is signed and delivered by the aggrieved party. |
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