Question batch 11

Which of the following promises may be enforceable even though they are not supported by consideration? I. a promise to pay a debt barred by the statute of limitations II. a promise to pay a debt discharged in bankruptcy III. a new promise to perform a voidable obligation that has not previously been avoided IV. a gratuitous promise, where there has been detrimental reliance, under the doctrine of promissory estoppel

All of the above

Which of the following statements, concerning consideration, is/are true? Consideration is the inducement to make a promise enforceable. There are two basic elements to consideration: (1) legal sufficiency and (2) bargained-for-exchange. To be legally sufficient, the consideration for the promise must be either a legal detriment to the promisee or a legal benefit to the promisor. Gratutious (gift) promises—those made without consideration—are not legally enforceable, except under certain circumstances. Adequacy of consideration is required - the items or actions that the parties agree to exchange must be of equal value.

Consideration is the inducement to make a promise enforceable. (True) There are two basic elements to consideration: (1) legal sufficiency and (2) bargained-for-exchange. (True) To be legally sufficient, the consideration for the promise must be either a legal detriment to the promisee or a legal benefit to the promisor. (True) Gratutious (gift) promises—those made without consideration—are not legally enforceable, except under certain circumstances. (True) Adequacy of consideration is required - the items or actions that the parties agree to exchange must be of equal value. (False)

Which of the following statements, concerning consideration, is/are true? Illusory promises cannot serve as consideration. Since consideration never exists in exclusive dealing contracts, they are never binding on the parties. The performance of, or the promise to perform, a preexisting legal or contractual duty is legally insufficient consideration because the doing of what one is legally bound to do is neither a detriment to the promisee nor a benefit to the promisor. Under the UCC, a modification of a preexisting contract must be supported by new mutual consideration; under the common law, a contract can be modified without new consideration.

Illusory promises cannot serve as consideration. (True) Since consideration never exists in exclusive dealing contracts, they are never binding on the parties. (False They are binding) The performance of, or the promise to perform, a preexisting legal or contractual duty is legally insufficient consideration because the doing of what one is legally bound to do is neither a detriment to the promisee nor a benefit to the promisor. (True) Under the UCC, a modification of a preexisting contract must be supported by new mutual consideration; under the common law, a contract can be modified without new consideration. (False, Switch common law and UCC)