Chapter 4: Consideration: The Value for the Promise

Larry, a doctor, witnessed Bob's accident. Larry dialed 911 and performed basic first aid on Bob while waiting for the ambulance. Bob was unconscious at the time. Larry bills Bob for Larry's services. Bob refuses to pay, and Larry sues. Will he prevail

A court may find that a quasi-contract arose

Bob is a Collin College student. He has accepted an unpaid internship with the Dallas Cowboys. Bob's mom wants to help her son financially while he is doing the internship. She agrees to give Bob $800 per month for the length of the internship. Legally, this payment is ___________

a gift

A compromise and settlement agreement can also be known as which of the following

accord and satisfaction

Consideration consists of

all of these choices: a benefit a detriment

Consideration may be

all of these choices: services property forbearance

Consideration can consist only of money

false

Promise of a gift is enforceable as valid consideration

false

Services cannot be used for consideration

false

When a party has a preexisting duty, the performance of that duty is a bargained-for exchange

false

A promise that gives a false impression of a contract is

illusory

Bob is seriously injured in a car accident while he is on vacation. When Bob is put inside the ambulance, the driver says, "That'll be one hundred and ninety dollars, please." Weak from blood loss, he whispers, "Send me a bill." Then, he faints. The EMTs wheel him into the hospital and start treatment while he is still unconscious. When the doctor on call checks him, the doctor orders his immediate admission to the hospital, where he wakes up the next day. Bob refuses to pay his hospital bill, saying, "I didn't agree to this." The hospital sues and wins. Why

implied contract

For consideration to exist, the value must be which of the following

legal

A claim for a specific sum is which of the following

liquidated

Match the terms with their definitions

past consideration - a prior existing promise that precedes some future act value - services, money, property, or acts of forbearance constituting forms of consideration preexisting duty - a prior existing responsibility to act or not act gift - a promise by one party with no exchange of value legal detriment - when a party sacrifices something in a transaction promissory estoppel - a promise which reasonably induces action on the part of the promisee and which non-enforcement would be unjust legal benefit - when a party gains something in a transaction

Bob is seriously injured in a car accident while he is on vacation. When Bob is put inside the ambulance, the driver says, "That'll be one hundred and ninety dollars, please." Weak from blood loss, he whispers, "Send me a bill." Then, he faints. The EMTs wheel him into the hospital and start treatment while he is still unconscious. When the doctor on call checks him, the doctor orders his immediate admission to the hospital, where he wakes up the next day. Bob learns that the ambulance driver is employed by the town's emergency services department and refuses to pay the bill when it arrives. The driver sues-and loses. Why

preexisting duty rule

The time period in which a party must file a lawsuit is

the statute of limitations

An employer lays off Bob. As Bob is exiting the building, his former boss Larry says, "I promise to call you when we need you." This promise is illusory

true

As a general rule, contracts must have consideration to be enforceable

true

Bob, a wholesaler of shoes, agrees to sell to Larry, a shoe retailer, 415 pairs of stolen shoes for $4500. (Larry was aware that the shoes were stolen merchandise.) Larry never gets the shoes because police officers raid Bob's business and seize all Bob's inventory. If Larry sues Bob for breach of contract, Bob will prevail

true

Consideration is the value paid for the promise

true

For consideration to exist, there must be a legal detriment or legal benefit

true

Once a statute of limitations passes, a party cannot use the court system to exercise his or her rights under the terms of the contract

true

Promissory estoppel focuses on principles of fairness and justice

true

When consideration is in dispute, the parties can execute an accord and satisfaction to resolve the dispute

true

A past moral obligation is unsupported by consideration, and it is

unenforceable

Bob was in a serious car accident and received medical treatment at the hospital. Bob, a self-employed baker, was unable to work during his long recovery period. Unable to pay his bills, he files bankruptcy, but reaffirms his debt to the hospital. Can the hospital enforce its contract with him

yes if the bankruptcy court accepts Bob's new promise