BL Ch. 10
According to Uniform Commercial Code Section ______, businesses may notify their debtors that any offer to settle a claim for less than the amount owed must be sent to a particular address and/or person.
3-311
According to Uniform Commercial Code Section 3-311, if a business inadvertently cashes a "paid in full" check, how long does the business have to offer repayment in the same amount to the debtor to avoid an accord and satisfaction?
90 days from the date the business cashed the check
In the context of the rules of consideration in contracts, which of the following is an accurate statement regarding adequacy of consideration?
A court does not determine whether you made a good bargain.
Which of the following is an accurate statement regarding adequacy of consideration in contracts?
A court seldom considers adequacy of consideration.
Which of the following is an accurate statement regarding partial payment of a liquidated debt?
A creditor's promise to accept less than owed for a liquidated debt is not binding.
Which of the following is an accurate statement regarding past consideration?
Past consideration is not consideration for a present contract.
Suppose a debtor owes a credit card company $3,000. The debtor calls the company and tells its representative she cannot afford to pay the $3,000 but that she is willing to transfer ownership of her car to the company in full settlement of the $3,000 debt. The credit card company agrees, accepts title to the car, sells the car, and recovers $2,000 from the sale. Which of the following is an accurate statement regarding the right of the credit card company to recover the remaining $1,000 from the debtor?
The company cannot recover the $1,000 since the "different performance" exception to the partial payment of a liquidated debt rule applies.
Suppose a debtor owes a credit card company $3,000. She calls the company and tells its representative that she cannot afford to repay the $3,000 but that she can pay $2,000. The credit card company agrees to accept the $2,000 as payment in full. Which of the following is an accurate statement regarding whether the credit card company has the right to recover the remaining $1,000 from the debtor?
The credit card company can recover the remaining $1,000 since a creditor's promise to accept less than owed for a liquidated debt is not binding.
Suppose a pool contractor agrees to build a pool for a homeowner by June 1. In May, the contractor informs the homeowner that he will not be able to complete the project by June 1 unless the homeowner pays him an additional $5,000 to hire more workers. Under objection, the homeowner agrees. Which of the following is an accurate statement regarding the homeowner's obligation to pay the contractor the additional $5,000?
The homeowner is not legally obligated to pay the $5,000 since the contractor had a preexisting contractual duty to complete the pool by June 1.
Suppose that someone offers a reward for the capture of a suspected criminal and a police officer arrests the suspect. Which of the following is an accurate statement regarding the police officer's entitlement to the reward?
The officer is not entitled to the reward since he was already obligated as part of his public duty to apprehend the suspect.
Which of the following is an accurate statement regarding a dispute for an unliquidated debt?
The parties involved may settle for less than the full amount by entering into an accord and satisfaction.
Which of the following is not a requirement for an accord and satisfaction to be enforceable?
The parties seek prior judicial approval of the accord and satisfaction.
Which of the following is an accurate statement regarding the performance of a duty a person is already legally obligated to do?
The performance of a duty a person is already legally obligated to do is not good consideration for a present contract.
Which of the following is an accurate statement regarding the performance of an existing contractual duty?
The performance of an existing contractual duty is not good consideration.
Which of the following transactions involves a promise for a promise?
a bilateral contract
Which of the following terms refers to an arrangement between contracting parties whereby one of the parties substitutes a different performance for his or her original duty under the contract?
accord and satisfaction
In a ______, the consideration for each promise is a return promise
bilateral contract
In return for performing a contract obligation, a person will receive _____
consideration
Following an according, if the party making the promise fails to pay the agreed amount the the other party may sue for ____
full amount owed under original contract
Suppose Shawn offers to sell Molly his skis for $300. Molly responds, "I'll look at them in the morning, and if I like them, I'll pay you." At this point, Molly has made a(n) ______ promise
illusory
In a(n) ______ debt, there is no dispute about the fact that money is owed and the amount of money owed.
liquidated
An illusory promise is _____
not a promise at all
Which of the following is not a recognized exception to the preexisting-duty rule?
performance of a duty a person is already obligated to do
One exception to the contract rule requiring consideration is ______
promissory estoppel
A court will enforce one party's promise only if _____
the other party promised something in exchange
In a unilateral contract, one party's consideration is ______, and the other party's consideration is _____
the promise; the act
If ______ circumstances cause a party to make a promise regarding an unfinished project, that promise is valid consideration.
unforeseen
In a ______, one party's consideration is the promise, and the other party's consideration is the act.
unilateral contract
In a(n) ______ debt, the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.
unliquidated
Which of the following terms refers to a situation where the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount?
unliquidated debt