ACCT 324 Ch 15

_____ are an exception to the common law rule requiring consideration.

Contracts under seal

Maya pays $5,000 and purchases a car from her friend, Jane. Later, Maya realizes that the car is worth less than $3000. Which of the following statements will be true if Maya plans to sue her friend?

Maya cannot sue Jane because the court seldom considers adequacy of consideration.

In which of the following situations is a consideration valid?

When past consideration is given with expectation of future payment

Brian offers to sell Rachel his computer for $200. Rachel says that she will look at the computer in the morning, and if she likes it she will buy it for $200. At this point, Rachel has not committed to doing anything. This is an example of a(n):

illusory promise.

When there is no dispute over the amount of debt or existence of debt, it is referred to as a _____.

liquidated debt

In an unliquidated debt, an accord is best described as the:

new agreement to pay less than the creditor claims is owed.

In a liquidated debt, _____.

once the debtor makes a different payment, the debt is satisfied and the creditor may not collect anything else

In a unilateral contract, if one party's consideration is a promise, the:

other party's consideration will be an act.

A debt is unliquidated when:

the parties dispute over the existence or amount of the debt.

If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise:

to do the extra work is valid consideration.