Chapter 12 Quiz

In some situations the courts will enforce new promises to perform an obligation that originally was not enforceable. Which of the following would be that sort of promise? a. An illusory promise. b. A new promise to pay a debt barred by the statute of limitations. c. A promise to supply all of the materials a manufacturer will need for the production of a certain item for a specified period of time. d. In the majority of states, a promise by a father to pay someone who rendered emergency services to his injured son before the father had arrived at the accident scene.

B. A new promise to pay a debt barred by the statute of limitations.

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 the following is eligible? a. The employees of the bank who signed an employment contract to provide their best efforts to apprehend and convict perpetrators of theft crimes in connection with their work at the bank. b. An off-duty deputy sheriff from a county other than the one where the arrest occurred. c. An on-duty sheriff's deputy in the county where the arrest occurred. d. None of these are eligible.

B. An off-duty deputy sheriff from a county other than the one where the arrest occurred.

__________ means doing that which the promise was under no prior legal obligation to do. a. Bargained-for exchange b. Legal detriment c. Bilateral d. illusory

B. Legal detriment

Terri owes Mickey $125 to be paid by December 31. In consideration of Terri paying him $75 on July 4, Mickey agrees to discharge the debt. a. Mickey's promise of discharge is not binding because of lack of legal consideration. b. Mickey's promise of discharge is binding because early payment is sufficient legal consideration. c. Terri's payment of $75 was no legal detriment to the promisee because she was under preexisting legal obligation to pay that much and more. d. Two of the answers are correct.

B. Mickey's promise of discharge is binding because early payment is sufficient legal consideration.

(T/F) A unilateral contract is not valid if a promise is exchanged for a forbearance.

False

(T/F) The law regards the performance of a public duty as a legal detriment or a legal benefit.

False

Florence says to Pat, "If I decide to buy a computer next year, I will buy it from you." This is an example of: a. an illusory promise. b. past consideration. c. the preexisting duty rule. d. good consideration.

A. an illusory promise.

Jeanne, a wealthy widow, promises the pastor of her church that she will donate $100,000 to the church to help pay off its mortgage, if the stewardship committee can obtain enough pledges for the balance of the $300,000 mortgage. The stewardship committee has meetings to prepare for the campaign and spends $3,000 on printing to publicize the "Mortgage Burning Campaign." The committee also spends considerable time and resources on planning specific fund-raising projects. Other pledges are obtained to pay off the mortgage, but now Jeanne has changed her mind and plans to take a world cruise instead. a. There is no consideration for Jeanne's promise to donate $100,000. It was a promise to make a gift, and gift promises can never be made enforceable in a court of law. b. The committee's actions could be seen by a court asked to enforce the agreement as consideration for Jeanne's promise. This would satisfy the requirement that consideration by both parties must be found for there to be an enforceable contract. c. Under Section 90 of the Restatement, Jeanne's promise is not enforceable. d. Jeanne's promise falls under the common law doctrine that promises made to satisfy a preexisting moral obligation are generally unenforceable.

B. The committee's actions could be seen by a court asked to enforce the agreement as consideration for Jeanne's promise. This would satisfy the requirement that consideration by both parties must be found for there to be an enforceable contract.

The fact that the consideration turns out to be disappointing __________ the binding character of the contract. a. does affect b. does not affect c. sometimes affects d. None of these are correct.

B. does not affect

As an exception to the rule on courts inquiring as to the adequacy of the consideration, a court will take evidence to establish: a. one party clearly has the better of the deal. b. one party claims to have been defrauded. c. one party has more business experience than the other. d. one party shows a much lower price nationally-advertised on television.

B. one party claims to have been defrauded.

All of the following will serve as adequate consideration except? a. Forbearance to do an act. b. Performance of services. c. An illusory promise. d. A promise to perform.

C. An illusory promise.

__________ is what each party to a contract gives up to the other in making their agreement. a. Contract under seal b. Promissory estoppel c. Consideration d. None of these are correct.

C. Consideration

__________ is an unenforceable promise under the law of contract because of a lack of consideration. a. Fraud b. Mutual mistake c. Gift d. Justifiable reliance

C. Gift

A contract based on __________ is not enforceable. a. legal detriment b. legal benefit c. past consideration d. unequal consideration

C. past consideration

Which of the following can be consideration for a promise? a. Refraining from assaulting one's roommate. b. Promising to refrain from stealing from the boss. c. Refraining from using a controlled substance. d. Refraining from smoking cigarettes.

D. Refraining from smoking cigarettes.

Which of the following is correct with regard to consideration? a. In a unilateral contract, a promise is exchanged for an act or forbearance to act. b. In a bilateral contract, there is an exchange of promises. c. Legal sufficiency is always related to adequacy of consideration. d. Two of the answers are correct.

D. Two of the answers are correct.

Ordinarily, courts do not consider the __________ of the consideration given for a promise. a. legality b. assumption of the risk c. modification d. adequacy

D. adequacy

__________________________ is an agreement to sell all of one's production to a single buyer

Output Contract

_______________________ is an agreement to buy all of one's needs from a single producer

Requirements Contract

(T/F) A conditional promise is generally considered sufficient consideration.

True

(T/F) Gratuitous promises are not legally enforceable, except in certain circumstances.

True

(T/F) The promise to perform a preexisting duty is not sufficient legal consideration to a contract.

True