BUS Law Ch 10 CC, HW

When Mr. Furuchi first asked for payment, what did Mr. Dewalla say in response?

"I don't owe you anything"

How does Dominique respond to the judge's questioning him about the message containing the information about the $700 fee to record?

He deleted it before he heard it all

What does the defendant (Dominique) say the plaintiff forgets to mention about their interactions?

He did lots of gigs for free

For a court to enforce a promise, who must offer consideration?

both sides

Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ________________.

illusory promise

A promise to do something that you are already obligated to do is ________________.

not valid consideration

Which of the following is an exception to the preexisting duty rule?

unforseen circumstances

What does Mr. Furuchi say about the agreement he made with Dominique regarding the recording fee at his studio?

He left a message with details

Highlight each title below to reveal a scenario. Read the scenario and then determine whether there is valid consideration. If the person has a preexisting duty, there is no valid consideration.

NO- government employee, firefighter YES- unforseen circumstance, additional work, UCC sale of goods

What does the judge rule about the agreement between the two parties?

No consideration and no contract

Donna is an accountant and decides to do her friend Mike a favor by filing his taxes for free. Mike is very thankful and tells Donna "I will pay you $500 for being so kind and generous!" Mike fails to keep his promise and does not pay Donna the $500. Donna then brings an action to have the promise enforced. Will the court hold that a contract exists?

No, past consideration is no consideration at all.

Eugene agrees to finish painting Hazel's house within two weeks of the time they agree to in the contract. A week in, Eugene realizes he cannot finish without additional help. He tells Hazel he will need an extra $700 to do this. Hazel agrees. With the additional help, Eugene finishes painting the house within the agreed two weeks. Does Hazel have to pay the extra $700?

No, under the preexisting duty rule, Hazel does not have to pay.

Suppose Xavier receives an offer to play on a minor-league hockey team a few states away from where he currently lives. He moves out of his apartment, turns down offers from other teams, and moves all his possessions to a new apartment close to the hockey arena. After moving there, Xavier is then told there is no position for him anymore! May he sue the hockey team?

Yes, this situation looks like promissory estoppel.

Suppose your boss tells the people you work with, "If any worker shows up at my house on Saturday and helps me clean my pool for three hours, I will pay the worker $75." You show up and help with the pool cleaning. What type of contract did you and your boss create

unilateral contract

Celia is a college student who just took her first trip to Las Vegas. While there, she charged $2,000 on her new credit card. When her credit card statement arrived, she noted that there were $3,000 in charges related to her Las Vegas trip! Horrified, she called the credit card company to dispute the excess charges. The credit card company insisted she had charged $3,000 on the card and Celia insisted she had only charged $2,000 on the card. Finally, Celia and the credit card company agreed that Celia would pay $2,500 as full payment of the credit card. Celia promptly sent them a check for $2,500. The following month, the credit card company billed Celia for the remaining $500! Celia sued, arguing that the credit card company had agreed to accept $2,500 as payment in full. The court agreed and ruled in Celia's favor, holding that the credit card company and Celia had entered into an accord and satisfaction. But what if the facts of the case were different? Select each set of facts below that could change the outcome of the court's decision.

Celia actually did charge $3,000 on her credit card and admitted such to the credit card company, but argued she only had $2,500 in her bank account to pay off the credit card. Celia and the credit card company agreed that Celia would pay $2,500 as full payment of the disputed debt, but Celia never paid the $2,500.

What does Mr. Furuchi say about Dominique's finished product from the recording studio?

Dom has it

Consideration is required in every contract. It is what a person will receive in return for performing a contract obligation. Suppose Dan agrees to purchase Marty's car for $1,000. Dan's payment of $1,000 is the consideration Marty will receive for the car. Title to and possession of the car are the consideration Dan will receive in exchange. Consideration can be anything, as long as it is the product of a bargained-for exchange. In a business context, it is often (but not always) money. How do the plaintiff and defendant know each other?

They played music together for years

Which of the following terms is not a condition required in promissory estoppel? I. One party makes a promise knowing the other party will rely on it. II. The other party does rely on the promise. III. The only way to avoid injustice is to enforce the promise.

all the terms are required

Frank works as a cellphone salesman. He has worked at the same company for the past two years, and one day his boss approaches him with good news. He says because Frank has sold so many phones lately, he is going to give Frank a $500 bonus. Three weeks later, Frank has still not received the bonus. Can Frank sue his boss to enforce the promise?

no, this is an example of past consideration