Worksheet 12.1: Elements of Consideration & Agreements That Lack Consideration

8. A preexisting duty might exist because of ________________ or a duty imposed by law.

a duty imposed by a previous contract

4. Carmen agrees to cook twenty dinners for Hal. In exchange, Hal will repair all the plumbing in Carmen's house. Carmen has offered legally sufficient consideration, because Carmen has promised something of value. True or False?

True

6. Something does not have to be of direct economic or financial value to be considered legally sufficient consideration. True or False?

True

7. If two parties substitute a new contract for an old one and the court finds that there was a preexisting duty, then the new contract will be invalid because there was no consideration. True or False?

True

5. Shockingly inadequate consideration can indicate the existence of what exceptions?

Undue Influence Fraud Duress

3. Something of legally sufficient value may consist of the performance of an action that one is otherwise not ___________ to undertake. Something of legally sufficient value may consist of the ____________ from an action that one has a legal right to undertake, called a forbearance.

obligated refraining

2. Something of legally sufficient value may consist of a promise to do something that one has no _________ legal duty to do.

prior

1. Consideration can be defined as

something of value given in exchange for a promise.

10. Constance tells Jill, her best employee, that, "Your work is so good, if I like what you do over the next six months, I'll give you a $1,000 bonus." Constance does not give Jill the bonus, so Jill sues. Most likely:

Jill will not win, because this is an illusory promise without consideration.

9. In the interest of fairness and equity, the courts may allow an exception to the preexisting duty rule when _________________.

contract performance involves unforeseen difficulties