Chapter 15 quiz

Consideration can be anything, as long as it is the product of a(n): Multiple Choice unilateral contract. bilateral contract. bargained-for exchange. assignment.

bargained-for exchange.

When one party gives a promise as consideration and the other party gives a(n) ________blank in consideration, a unilateral contract will result. Multiple Choice promise agreement writing act

act

Suppose that Brittany agrees to purchase Kathy's computer for $700. Brittany's payment of $700 is the ________blank that Kathy will receive for her computer. Multiple Choice consideration offer reciprocity agreement

consideration

Tate agrees that he owes a creditor $20,000, as the creditor claims. Tate explains to the creditor that he can only pay the bank $12,000 as full payment toward the money he owes. The creditor agrees to accept $12,000 from him. The following month, Tate receives a bill claiming that he still owes the creditor $8,000. Which of the following statements is true of this scenario? Multiple Choice Both Tate and the creditor can settle their dispute through an accord and satisfaction, as this is a case of an unliquidated debt. Tate can sue the bank based on breach of promissory estoppel .If Tate does not agree to pay the remaining $8,000, the creditor may sue Tate for the balance it believes is owed. Tate cannot be sued by the creditor for nonpayment because of the different payment that has already been made by him.

.If Tate does not agree to pay the remaining $8,000, the creditor may sue Tate for the balance it believes is owed.

Regarding the enforceability of a present promise, which of the following is an accurate statement regarding past consideration? Multiple Choice Past consideration is equitable consideration to support the enforceability of a present promise. Past consideration is conditional consideration to support the enforceability of a present promise. Past consideration is sufficient consideration to support the enforceability of a present promise. Past consideration is no consideration at all.

Past consideration is no consideration at all.

_______blank occurs when one party makes a promise knowing the other party will reasonably rely on it, the other party does reasonably rely on it, and the only way to avoid injustice is to enforce the promise. Multiple Choice Forbearance A crime Promissory estoppel A tort

Promissory estoppel

Wanda purchases a motorcycle from her friend, Leslie. She pays Leslie $8,000. Later, Wanda realizes that the motorcycle is worth less than $4,000. If Wanda plans to sue Leslie, which of the following statements applies? Multiple Choice Wanda cannot sue Leslie because the court seldom considers adequacy of consideration. Leslie will be held guilty because her action is a breach of promissory estoppel. The court will hold Leslie not liable as she made a unilateral promise. Wanda can sue Leslie because the motorcycle was not worth the amount Wanda paid for it.

Wanda cannot sue Leslie because the court seldom considers adequacy of consideration.

When parties agree that a debt is owed and the amount of that debt, then that debt is considered to be: Multiple Choice bilateral. unilateral. unliquidated. liquidated.

liquidated.

The preexisting duty rule means that: Multiple Choice performance of a duty you are obligated to do under the law is not good consideration. past consideration is valid if a unilateral contract is involved. an illusory promise may be enforced if the promise was made before consideration was given. the mutual exchange of promises is not enforceable.

performance of a duty you are obligated to do under the law is not good consideration.

Macon is offered a job by a reputable company in Boston. Macon quits his job in Chicago and moves to Boston along with his family. The first day he goes to work at the new company, he is told that there is no job for him. Macon can sue the employer under the theory of: Multiple Choice promissory legality. promissory estoppel past consideration. consideration.

promissory estoppel