Chapter 2: Contract Formation: Consideration
The legal value element of consideration requires (A) a detriment to either the promisor or promisee plus a benefit to either the promisor or promisee. (B) a benefit to the promisee or a detriment to the promisor. (C) a detriment to the promisee and a benefit to the promisor. D) a detriment to the promisee or a benefit to the promisor.
D) a detriment to the promisee or a benefit to the promisor.
Assume the city decides it wants to back out of the deal with the Jedi Knights. The city argues that its promise to build a new stadium is merely gratuitous. Is the city likely to prevail in this argument? (A) No, because the consideration for the city's promise to build a new stadium is the team's promise to move to Coruscant and stay for at least five years. (B) Yes, the city's promise to build a new stadium did not induce a detriment to the Jedi Knights, since they have not yet moved to Coruscant. (C) Yes, because having the Jedi Knights move to Coruscant is apparently no longer beneficial to the city and, as such, does not constitute consideration. (D) No, because the adequacy of consideration does not matter unless the entire contract is a sham or a pretense, which here it is not.
(A) No, because the consideration for the city's promise to build a new stadium is the team's promise to move to Coruscant and stay for at least five years.
An executed gift (A) cannot be taken back since the promise to give a gift has been fulfilled. (B) is the same as a gratuitous promise. (C) is the same as an executory gift. (D) is normally the result of a bargain
(A) cannot be taken back since the promise to give a gift has been fulfilled.
In a unilateral contract the consideration for a promise is (A) a reciprocal promise. (B) actual performance.
(B) actual performance.
Between family members a promise to render services (A) is always considered a gratuitous promise. (B) creates a rebuttable presumption that the services are gratuitous. (C) is presumptively a contract if between spouses. (D) cannot be rescinded
(B) creates a rebuttable presumption that the services are gratuitous.
A reciprocal promise exists when (A) at least one party's motive for making the promise is to induce the other party to make a promise. (B) each party's motive for making the promise is to induce the other party to make a promise.
(B) each party's motive for making the promise is to induce the other party to make a promise
After executing the agreement, the city and the team began having difficulties. The team argues that it need not move to Coruscant because its promise to move is legally unenforceable. Is the team likely to prevail in this argument? (A) Yes, the city's supposed return promise to build a new stadium is illusory since there a no specifications for the new stadium. (B) Yes, because the city has not yet done anything, there is no consideration for the team's promise to move to Coruscant. (C) No, because the city's promise to build a new stadium is consideration for the team's promise to move to Coruscant. (D) No, because the team's promise to move to Coruscant was in writing and therefore official and enforceable.
(C) No, because the city's promise to build a new stadium is consideration for the team's promise to move to Coruscant.
The primary focus of the consideration rule is to establish whether or not there was A) a promise between the parties. (B) a gratuitous promise between the parties. (C) a bargain between the parties. (D) legal value.
(C) a bargain between the parties.
The primary policy function of consideration is to (A) provide evidence that the parties intended to enter an enforceable bargain. B) caution the parties so that they are not making thoughtless promises. (C) help the courts efficiently channel promises into legally enforceable and non-legally enforceable categories. (D) All of the above are true.
(D) All of the above are true.
An executory gift is (A) a gift already given. B) a gift that has not yet been given. (C) any bequest made by virtue of a will that the executor has distributed to those who inherited.
B) a gift that has not yet been given.
QUESTIONS 10 and 11 are based on the following facts:
The owners of a major league baseball team—the Jedi Knights—were thinking about moving the franchise. A group of civic boosters wanted a team in their home city of Coruscant. The boosters told the team owners, "If you will move the Jedi Knights to Coruscant and stay for at least five years, we will build a new stadium." The parties agreed to this, and a formal document was executed in which the team agreed to move to Coruscant and remain there for at least five years and, in exchange, the city agreed to a build a new stadium in accordance with specifications to be set out later.
