Ks AMP- Consideration

Which of the following promises is commonly considered to be illusory? A A promise with an unqualified right to cancel or withdraw at any time B A promise conditioned on the promisor's satisfaction C A promise to purchase all that one requires D A promise to sell all that one decides to make

A

What is an "illusory" promise?

A promise where the promisor is NOT bound to perform

A child wishes to buy an electric guitar from a music store on credit. Her father promises the music store that he will make the payments on the guitar if the child defaults. The father's promise is __________.

A surety promise

Which of the following would serve as sufficient consideration for a promise by a creditor to discharge an existing debt?

An alternative method of payment

Which of the following is sufficient to establish bargained-for consideration? A A benefit that is not intended to induce a detriment B A benefit that provides peace of mind C A detriment involving a prior legal obligation

B

Which of the following is the best definition for the term "consideration"? A An existing legal duty B A bargained-for change in legal position between the parties C Any action that is reasonably expected to induce action or forbearance

B

Which of the following would not be considered valuable consideration that supports a contract? A Peace of mind for the promisor. B Fulfillment of a condition to receive a gift. C A benefit with no economic value. D The gratification of influencing the mind of another.

B

How can one avoid the preexisting legal duty rule?

By modifying the original consideration slightly

Which of these is the best example of a ratification? A A new valid promise to perform on a disputed debt B A new valid promise to perform a preexisting legal duty C A new valid promise to perform a voidable obligation

C

Which of these might be considered valuable consideration? A A promise to do something that one is legally obligated to do B A promise to make a gift C A promise with no economic value

C

Which of the following statements is true regarding the modification of a contract? A Both the common law rule and U.C.C. Article 2 allow modification without new consideration if the modification is sought in good faith B Both the common law rule and U.C.C. Article 2 always require new consideration to modify a contract C The common law rule generally requires new consideration to modify a contract, whereas U.C.C. Article 2 allows modification without new consideration if the modification is sought in good faith D U.C.C. Article 2 requires new consideration to modify a contract, whereas the common law rule allows modification without new consideration if the modification is sought in good faith

C; the common law rule generally requires new consideration to modify a K, whereas UCC article 2 allows modification without new consideration if the modification is sought in good faith

Which of the following is not traditionally an element of the doctrine of promissory estoppel? A Detrimental reliance B The reasonable expectation that the promise will induce action or forbearance C An action or forbearance that is in fact induced by a promise D Valuable consideration on both sides of the bargain

D

Which of the following normally would not be an exception to the preexisting legal duty rule? A A compromise based on an honest dispute as to duty. B A minor's ratification of a contract upon reaching the age of majority. C An acceleration of the performance of the duty. D Payment of a smaller sum to settle an existing debt.

D

In most states, when forming a contract, which of the following is not a necessary element of consideration? A A bargain for something of legal value. B A bargained-for exchange between the parties. C A benefit to the promisor or a detriment to the promisee. D An economic benefit to the promisor.

D An economic benefit to the promisor

Under U.C.C. Article 2, what standard is applied to allow the modification of a sales contract without additional consideration?

Good faith

Under the doctrine of promissory estoppel, a promise is enforceable __________ when the promisor should reasonably expect to induce action or forbearance, and such action or forbearance is in fact induced.

If necessary to prevent injustice

A suretyship contract is supported by proper consideration:

If the surety is compensated or makes the suretyship promise before (or at the same time as) the creditor performs or promises to perform

Valuable consideration must have:

Legal value

The __________ is a possible exception to the general rule against the use of "past" consideration as the basis for a contract.

Material benefit rule The material benefit rule is a possible exception to the general rule against the use of past consideration as the basis for a contract. Under the rule, some courts will enforce a promise if: (i) it is based on a material benefit that was previously conferred by the promisee on the promisor, and (ii) the promisee did not intend to confer the benefit as a gift. This includes situations in which the promisee performed an act at the promisor's request or performed an unrequested act during an emergency.

An agreement in which one party has become bound but the other has not, can be said to lack __________.

Mutuality

Generally speaking, the promise to perform an existing legal duty is __________.

Not consideration

What does it mean when an agreement lacks mutuality?

One party has become bound but the other has not

When the amount due on a debt is undisputed, which of the following will not be considered sufficient consideration for a promise by the creditor to discharge the debt?

Payment of a smaller sum than due

__________ can serve as a substitute for consideration.

Promissory Estoppel Under the doctrine of promissory estoppel, a promise is enforceable even without consideration if necessary to prevent injustice if the promisor should reasonably expect to induce action or forbearance, and such action or forbearance is in fact induced.

If you agree to refrain from doing something that you have a legal right to do, you have __________.

Suffered a legal detriment

Which of the following statements about suretyships is false?

Suretyship Ks are enforceable without consideration

A promise not to sue on a claim can be considered valuable consideration only if:

The claim is valid or the claimant reasonably and in good faith believes the claim is valid

The promise to refrain from suing on a claim may constitute consideration provided that __________.

The claimant reasonably and in good faith believes his claim to be valid

A conditional promise is unenforceable if:

The condition is entirely within the promisor's control

Conditional promises are enforceable even if __________, but not if __________.

The contingency is extremely remote; the condition is entirely within the promisor's control

An otherwise valid debt that is now barred by the statute of limitations can still be enforced if______.

The debtor makes a new promise to pay the debt in writing

A pedestrian shoved a child out of the path of a speeding car and in doing so sustained significant injuries. The child's grateful parents promised to pay the pedestrian's medical bills but then later refused to pay. Which one of the following offers the pedestrian's best hope of recovery against the child's parents for the cost of the medical bills?

The material benefit rule Some courts will enforce a promise if: 1) it is based on a material benefit that was previously conferred by the promisee on the promisor, and 2) the promise did not indent to confer the benefit as a gift.

Under U.C.C. Article 2, a contract for the sale of goods may be modified without consideration only if:

The modification is sought in good faith

A promise to choose one of several alternative means of performance is illusory (lacks consideration) if __________.

The promisor retains the power to select an alternative without legal detriment

A promise __________ lacks consideration.

To make a gift

A bargained-for change in legal position between the parties is commonly known as __________.

Valuable consideration

A promise to choose among one of several alternative means of performance, only one of which involves an actual legal detriment, will be deemed __________.

Valuable consideration if the choice of performance rests with the promisee

In judging the validity of consideration, courts of law __________ inquire into the adequacy of the consideration.

Will Not

In determining whether an agreement qualifies as a legally enforceable contract, courts of law normally will not inquire into the __________ of consideration.

adequacy

A gratuitous surety contract will be considered unenforceable for lack of consideration if the surety makes his promise to pay __________.

after the creditor has performed or made an absolute promise to perform

Conditional promises are generally enforceable, unless the __________.

condition is entirely within the promisor's control

A legal detriment can best be defined as __________.

doing something you are under no legal obligation to do, or refraining from doing something that you have a legal right to do