Chapter 9

Consideration in a contract may be more than just the promises exchanged by the parties, but the actual benefit gained and the detriment suffered by them.

True

Consideration required in an enforceable contract can take various forms such as exchange of promises, forbearance, and pledges or subscriptions.

True

Many contracts in which part of consideration is forbearance involve agreements to compete.

False

The exchange of money is a mandatory requirement for a consideration.

False

In general, courts do not attempt to judge the adequacy of consideration.

True

Sometimes the unequal bargaining power of parties to a contract gives one party an unfair advantage when dealing with those who lack the economic power to enter into a contract on an equal footing.

True

The most common form of valid consideration is the promise of money by one party for the promise of an act by another.

True

The promisor may make a promise to pay a sum of money to the promisee for the performance of a certain act.

True

A valid contract may exist even if consideration is a promise to perform an illegal act, or to avoid performing an act that is legally required to be performed

False

The promises exchanged by the parties to a contract, either to give up something of value they have a legal right to keep, such as money or property; to do something they are not otherwise legally required to do, such as performing a service; or to refrain from an action is known as

Consideration

Contracts in which the parties have unequal bargaining power are known as unconscionable contracts.

False

A party who promises to do something that is merely difficult to perform, or poses unforeseen expenses, is

Bound by the terms of the contract

The promise to refrain from doing something that a party has a legal right to do, or the promise of inaction, is known as

Forbearance

Jack promised to pay his nineteen year-old neephew $300 on his twenty-second if he refrained from smoking cigarettes until he graduated from Western State College. This contract is legal and illustrates the promise of

Forbearance as consideration

The law assumes that, as long as no undue pressure is brought to bear, the parties were

Free to reject a proposed unfair contrat

A contract will not be enforced if it

Is impossible to fulfill

The three essential characteristics of valid consideration are

Legality, adequacy, and the possibility of performance

A valid contract does not exist if the contract is a promise of/to

Perform an illegal act

The most common form of valid consideration is

The promise of money by one party for the promises of an act by another

A promise of an act by one party in exchange for the promise of an act of another is also considered a

Valid consideration