Blaw ch 12 Test
Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60. When Mary finishes the dress (with ruffles), Georgia must pay:
$60, since the modified agreement is supported by additional consideration.
Which of the following will support a contract?
Forbearance to do an act
Rob repairs a door for Howard. In return, Howard is supposed to pay Rob $75 on November 1 at Howard's house. Which of the following would constitute legally sufficient consideration?
Howard pays Rob $60 on November 1 but, after checking with Rob, brings payment to Rob's house.
Stan purchased 400 pairs of gloves from Isaac at a contract price of $800. Fifty of the gloves were defective, and a dispute arose as to the amount due and owing under the contract. Stan refuses to pay the $800, and Isaac is threatening to sue. Which of the following is correct with regard to this transaction?
If Isaac agrees to accept $600 to settle the dispute and Stan agrees to pay that amount, the substitute agreement is enforceable.
In which of the following situations will a smaller sum be unable to discharge a larger debt?
If the smaller sum is paid when the larger sum would ordinarily be due, but the debtor is on the verge of insolvency.
Jason's mother would like him to go to college, so in June he enrolls at State University. He also quits his job and tells his mother his plans to continue taking classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Which of the following is true regarding his mother's promise?
It is unenforceable, because Jason had already enrolled in school and there is no consideration.
Janet promises Eli $4,000 for one of his original paintings on the condition that she receive $1 million from her mother's will.
Janet's promise is legally sufficient unless Janet knew at the time she made the promise that she could not inherit the $1 million.
Which of the following requires consideration in order to be binding upon the parties?
Material alteration of a personal service contract
Nancy, who lives in Birdville, wants to open a McHenry Roast Chicken franchise. Mark, a representative of McHenry, told Nancy, "If you will buy a lot and build a building in River City, we will give you a franchise." Nancy bought the lot and built the building as instructed, only to discover that McHenry had awarded the franchise to a large corporation. McHenry claims no liability to Nancy since there was no consideration. Which statement is most accurate?
McHenry is liable to Nancy based on the concept of promissory estoppel
Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated. She expects to know for sure how much she will receive within a week or so.
The consideration moving from Darla to Edward is the promise of $6,000 subject to a condition. Darla's conditional promise is sufficient consideration unless Darla knows she cannot receive at least $6,000 from her uncle's estate.
Barbara, a wealthy widow, promises the pastor of her church that she will donate $20,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $80,000 mortgage. Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead.
The doctrine of promissory estoppel can be applied to this case Under the Restatement, Barbara's promise is enforceable.
Which of the following statements is most accurate concerning charitable subscription promises?
They are generally enforceable if there is reliance by the charity
Marilyn contracted with Bravo Builders to build an addition to her house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Marilyn agrees, which of the following is correct?
This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders.
Tyler contracts to build a garage for Wilbur for a price of $6,000. Because of an increase in the cost of labor and materials, Tyler refuses to perform. Wilbur wants the garage, so he agrees to pay an additional $500.
Tyler has given no additional consideration, and under the common law must perform at the agreed upon original price.
Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract?
Yes, because Robbie gave up a legal right
Which of the following gratuitous promises are enforceable by statute?
A good-faith contract modification in a contract for the sale of goods A written offer signed by a merchant to buy or sell goods that assures it will be kept open for one month A renunciation of a claim in a written waiver that is signed and delivered by the aggrieved party when the contract involves a sale of goods
Which of the following is enforceable without consideration?
A new promise to pay a debt barred by the statute of limitations.
Which of the following would most likely be enforceable?
A substitute agreement to settle an undisputed debt
Doug obtains an exclusive franchise to sell widgets for the Acme Widget Company. The exclusive franchise covers the entire State of Wisconsin for a period of three years.
Acme is obligated to use its best efforts to supply the goods even if no such clause appears in the written franchise agreement. According to the UCC, unless otherwise agreed, Doug must use his best efforts to promote the sale of the widgets in his territory.
Sue owes $5,000 to the First National Bank for a student loan which will come due on January 1 next year. She has been offered a two-year graduate fellowship, but she will not be able to pay the loan back if she accepts the fellowship. The bank manager tells Sue that if she pays $3,000 now, they will forgive the loan. Should Sue accept the offer?
Yes, because the early payment of the loan is consideration that makes the bank's promise binding
A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible?
An off-duty deputy sheriff from a county other than the one where the arrest occurred
Andrew agrees to paint Betty's house for $500. Two days after he starts the job, he decides that $500 isn't enough money. He refuses to finish the job unless Betty agrees to pay him $100 more. What law applies to this fact situation?
Andrew gives no additional consideration in return for modification of a preexisting contract.
Carlos ordered an aluminum storm door for $249.99. Before it was delivered, the same store from which he ordered the door ran an ad in the paper for the same storm door at $179.99. Carlos calls the store and demands the advertised price. They say okay.
Carlos must pay $179.99.
Jack moved from New Hampshire to Florida and decided to have an air conditioner installed in his car. After it was installed, Jack received a bill for $1,200. Jack called the dealer and told him he'd never heard of this service costing more than $500. They argued, but the dealer finally agreed to take $900. Is the agreement enforceable?
Yes, there is consideration for the modified amount
Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:
an illusory promise.
The requirement of legally sufficient consideration:
is that the parties have agreed to an exchange and it imposed a legal detriment upon the promisee or conferred a legal benefit upon the promisor.
A purchaser's agreement to buy from a particular seller all the materials of a particular kind he needs is a(n) ____ contract.
requirements
Which of the following are the two basic elements to consideration?
Bargained-for exchange and legal sufficiency
William agrees to drill a well up to 200 feet deep for John's rural cabin. The contract price is $3,000. After drilling 100 feet, William strikes solid granite rock. He talks to John and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract. He offers to get a special drill, but says it will cost him more money, so that he will be unable to complete the project for the agreed price. Because John is anxious to have the well, he agrees to pay William an additional $1,000 to complete the job. However, once the well is finished, he changes his mind and now says he will pay only the originally agreed-upon amount.
The parties have agreed to a substitute contract which discharges the original contract. John is obligated to pay the additional $1,000.
Wayne helped Hank study all night for an important exam. After Hank got an A on the exam, he told Wayne, "I will give you $10 for helping me get a good grade." Wayne said, "Thanks, I'll take it."
There is no contract because there is no valid consideration.
