chapter 15 quiz

Consideration can be anything, as long as it is the product of a(n) _______.

bargained-for exchange.

A party will receive _______ in return for performing a contract obligation.

consideration

When parties agree that a debt is owed and the amount of that debt, then that debt is considered to be _______.

liquidated

Kevin is offered a job by a reputable company in a different city. To take the new job, Kevin quits his previous job and moves to the new city along with his family. When he shows up at work, he is told that there is no job. Kevin can sue the employer under the theory of

promissory estoppel

In a ________ contract, if one party's consideration is a promise, and the other party's consideration will be an act.

unilateral

If the parties dispute either the existence of a debt or the amount of a debt, that debt is called a(n) _______ debt.

unliquidated

All but which of the following is an exception to the preexisting duty rule? Consideration given in expectation of future payment Unforeseen circumstances Additional work UCC Article 2 (sale of goods)

Consideration given in expectation of future payment

Ronald agrees that he owes a bank $10,000, as claimed by the bank. Ronald explains to the bank that he can only pay the bank $8,000 as full payment toward the money he owes. The bank agrees to accept $8,000 from him. The following month, Ronald receives his new bank statement claiming that he still owes the bank $2,000. Which of the following statements is true of this scenario? A. Ronald can sue the bank on the basis of breach of promissory estoppel. B. Ronald cannot be sued by the bank for nonpayment because of the different payment that has already been made by him. C. Both Ronald and the bank can settle their dispute through an accord and satisfaction, as this is a case of an unliquidated debt. D. If Ronald does not agree to pay the remaining $2,000, the creditor may sue Ronald for the balance it believes is owed.

If Ronald does not agree to pay the remaining $2,000, the creditor may sue Ronald for the balance it believes is owed.

Which of the following statements most accurately reflects the preexisting duty rule? A. Performance of an act in exchange for a promise is not good consideration. B. Consideration given before a promise is made is not good consideration. C. An illusory promise is no promise at all. D. Performance of a duty you are obligated to do under the law is not good consideration.

Performance of a duty you are obligated to do under the law is not good consideration.

For an unliquidated debt, A. even if the debtor pays the money agreed to, the creditor may still sue for the balance it believes is owed. B. once the debtor pays the amount agreed on by both the parties, the debt is fully discharged. C. even if the debtor fails to pay a lesser amount as agreed, the creditor cannot sue the debtor for payment. D. debtors cannot create an accord and satisfaction by sending the creditor a check with "paid in full" written on it.

once the debtor pays the amount agreed on by both the parties, the debt is fully discharged.