Law Ch 8

True or False - A promise to steal a valuable piece of art is valid consideration to support a contract.

False

True or False - For a promise to constitute consideration, the promised must prevent imposing an obligation on the person making it.

False

True or False - Only financial items can constitute consideration.

False

True or False - Performing or promising to perform what one is already obligated to do is valid consideration.

False

True or False - The Uniform Commercial Code (UCC) States that when a contract for the sale of goods is modified by agreement of the parties consideration is necessary to make it enforceable.

False

True or False - When charitable enterprises are financed by voluntary subscriptions of many people, the promise of each person is generally not held to be enforceable.

False

True or False - As a general rule, the adequacy of the consideration is irrelevant because the law allows bargains.

True

True or False - Consideration distinguishes mere agreements from legally enforceable obligations.

True

True or False - Consideration is not necessary to support an obligation of record.

True

True or False - If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid.

True

True or False - generally a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt.

True

Forbearance

When one refrains or promises to refrain from doing something.

Which constitutes valid consideration?

A promise to refrain from doing an act that can be lawfully done.

As a general rule, a promise must be supported by consideration. Give an example of an exception to this rule that can be enforced without support of consideration.

An obligation of record, such as a judgment

Mark owes $2000 each to his business partners Ryan, Bryan, and Clark. Since Mark is facing financial difficulties, his business partners agree to accept a total of $4800 from Mark as cancellation of the unpaid balance due them. This type of agreement is known as...

Composition of Creditors

What best describes consideration?

Consideration indicates what the promise demands and receives as the price for a promise.

Promissory Estoppel

Requires the promisor to reasonably expect the promisee to induce action by the promise.

What needs to happen when parties to a contract mutually agree to cancel an old contract and replace it with a new one?

To be enforceable, there must be added features in the new contract benefiting both parties.

Blake has subscribed to a local charitable association where he needs to meet a monthly payment of $100. However, a few months later, Blake stops paying this amount. Which of the following exceptions to the requirement of consideration will enforce that Blake pays the amount?

Voluntary Subscriptions