Business Law Chapter 10 quiz (True/False)

For accord and satisfaction to occur, the amount of the debt cannot be in dispute

False

For consideration to have "legally sufficient value," it must consist of goods or money (11)

False

Inadequate consideration always indicates undue influence (18)

False

The element of bargained-for exchange distinguishes contracts from gifts

False

Consideration is the value given in return for a promise

True

Forbearance is the act of refraining from doing something that one has a legal right to do (13)

True

If debt is liquidated, accord and satisfaction cannot take place

True

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made (14)

True

Statutes of limitations in all states require a debtor to pay a debt within a specified period of time

True

There can be no satisfaction unless there is first an accord

True

Adequacy of consideration refers to how much consideration is given.

True

A covenant not to sue is against public policy

False

A determination of whether consideration exists depends on a comparison of values of the things exchanged.

False

A promise made in return for an act or event that has yet taken place in unenforceable

False

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration (12)

False

A covenant not to sue does not always bar further recovery (20)

True

A preexisting duty may arise from a previous contract (15)

True