Bus Law Exam #2: Ch. 10 (Contracts-Consideration) Study Quiz

As a friend and a real estate agent, George agrees to sale Emma's house without charging a commission. George sells the house quickly. As an expression of gratitude, Emma promises to reward George for his work. A year later, George still does not receive the money. This example is an illustration of __________. Multiple Choice 1. preexisting duty 2. promissory estoppel 3. illusory promise 4. past consideration

4. past consideration

Brian promises his tennis coach that he will not ride his motorcycle until the tournament is over even though he loves riding it. What type of consideration does the example suggest? Multiple Choice a. A detriment to the promisee. b. A promise to do something. c. A benefit to the promisor. d. A benefit to the promisee.

a. A detriment to the promisee.

If a person returns a lost dog to an owner and the owner then offers a reward, why can't the person enforce payment of the reward? Multiple Choice a. Past consideration. b. Illusionary promise. c. Preexisting duty. d. Illegal consideration.

a. Past consideration

In which of the following instances can injustice be avoided by carrying out the promise? Multiple Choice a. Promissory estoppel. b. Illusory promise. c. Preexisting duty. d. Past consideration.

a. Promissory estoppel.

All of the following requirements are necessary for an accord and satisfaction to be enforceable, except: Multiple Choice a. The debt is liquidated. b. The creditor agrees to accept as full payment less than the creditor claims is owed. c. The debtor pays the amount they have agreed on. d. The debt is unliquidated.

a. The debt is liquidated.

A pool lifeguard demands money after saving Bob from drowning in the pool. Bob does not have to pay the lifeguard because this is an instance of __________. Multiple Choice a. preexisting duty b. illusory promise c. past consideration d. promissory estoppel

a. preexisting duty

Promising to stop smoking for a week is an example of what type of consideration? Multiple Choice a. A promise to do something. b. A promise to refrain from doing something. c. A benefit to the promisor. d. A detriment to the promisor

b. A promise to refrain from doing something.

Which of the following is an exception to the preexisting duty rule? Multiple Choice a. Foreseeable change in circumstances. b. Additional work. c. Detrimental reliance. d. Promissory estoppel.

b. Additional work.

Which of the following is not a condition of promissory estoppel? Multiple Choice a. One party makes a promise knowing the other party will rely on it. b. Consideration must clearly exist. c. The other party relies on the promise. d. The only way to avoid injustice is to enforce the promise.

b. Consideration must clearly exist.

Which of the following is an example of a unilateral contract? Multiple Choice a. Mike agrees to sell his car to Mary for $4,000. Mary agrees to buy Mike's care for $4,000. b. If you wash my car, I will pay you $20. c. Lisa promises to paint Kathy's house for $2,000. Kathy agrees to pay Lisa $2,000. d. Grant offers to mow Carol's lawn for $15. Carol accepts and agrees to pay Grant $15.

b. If you wash my car, I will pay you $20.

How often to courts weigh whether or not you made a good bargain? Multiple Choice a. Always. b. Seldom. c. Frequently. d. Never.

b. Seldom.

If the parties do not dispute the amount of money owed, the debt is a(an) __________ debt. Multiple Choice a. partially liquidated b. liquidated c. nonliquidated d. unliquidated

b. liquidated

A promise to do something that you are already obligated to do is __________ consideration. Multiple Choice a. good b. legal c. insufficient d. partial

c. insufficient

Bob's promise to paint Mary's house if he has time is an illustration of: Multiple Choice a. valid consideration. b. promissory estoppel. c. past consideration. d. an illusory promise.

d. an illusory promise.

Consideration must be __________. Multiple Choice a. real property b. an exchange of money c. given by the offeror but not the offeree d. the product of a bargained for exchange

d. the product of a bargained for exchange

An illusory promise is sufficient consideration for unilateral contracts but not bilateral contracts

false

Consideration must be given before the promise is made.

false

For a liquidated debt, the plaintiff must show actual, tangible evidence to prove his or her legal damages.

false

he court always considers the adequacy of consideration given by the parties.

false

In a bilateral contract, one party's consideration is the promise and the other party's consideration in return is also a promise.

true