BLAW CH 10 SB

________ work is consideration on a promise for additional money as a basis for a contract.

Extra

Which of the following is not a valid type of consideration?

a promise to serve as a donee

Which of the following terms refers to an arrangement between contracting parties whereby one of the parties substitutes a different performance for his or her original duty under the contract?

accord and satisfaction

For a promise to be enforced by the courts, there must be ______.

consideration

In return for performing a contract obligation, a person will receive ______.

consideration

Consideration is what a person will receive in return for performing a(n) ______ obligation.

contract

In the context of the rules of consideration in contracts, which of the following is an accurate statement regarding adequacy of consideration?

A court does not determine whether you made a good bargain.

Which of the following is an accurate statement regarding adequacy of consideration in contracts?

A court seldom considers adequacy of consideration

Which of the following is an accurate statement regarding partial payment of a liquidated debt?

A creditor's promise to accept less than owed for a liquidated debt is not binding.

______ is not valid consideration for contract enforcement

Past consideration

Which of the following is an accurate statement regarding past consideration?

Past consideration is not consideration for a present contract.

______ is a promise to do something you are already legally obligated to do.

Preexisting duty

_____ is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.

Promissory estoppel

Suppose a debtor owes a credit card company $3,000. The debtor calls the company and tells its representative she cannot afford to pay the $3,000 but that she is willing to transfer ownership of her car to the company in full settlement of the $3,000 debt. The credit card company agrees, accepts title to the car, sells the car, and recovers $2,000 from the sale. Which of the following is an accurate statement regarding the right of the credit card company to recover the remaining $1,000 from the debtor?

The company cannot recover the $1,000 since the "different performance" exception to the partial payment of a liquidated debt rule applies

Suppose a debtor owes a credit card company $3,000. She calls the company and tells its representative that she cannot afford to repay the $3,000 but that she can pay $2,000. The credit card company agrees to accept the $2,000 as payment in full. Which of the following is an accurate statement regarding whether the credit card company has the right to recover the remaining $1,000 from the debtor?

The credit card company can recover the remaining $1,000 since a creditor's promise to accept less than owed for a liquidated debt is not binding.

Which of the following is not a requirement for an accord and satisfaction to be enforceable?

The creditor refuses to accept as full payment less than the creditor claims is owed.

Which of the following is not a requirement for an accord and satisfaction to be enforceable?

The debt is liquidated.

Suppose a pool contractor agrees to build a pool for a homeowner by June 1. In May, the contractor informs the homeowner that he will not be able to complete the project by June 1 unless the homeowner pays him an additional $5,000 to hire more workers. Under objection, the homeowner agrees. Which of the following is an accurate statement regarding the homeowner's obligation to pay the contractor the additional $5,000?

The homeowner is not legally obligated to pay the $5,000 since the contractor had a preexisting contractual duty to complete the pool by June 1.

Suppose that someone offers a reward for the capture of a suspected criminal and a police officer arrests the suspect. Which of the following is an accurate statement regarding the police officer's entitlement to the reward?

The officer is not entitled to the reward since he was already obligated as part of his public duty to apprehend the suspect.

Which of the following is an accurate statement regarding a dispute for an unliquidated debt?

The parties involved may settle for less than the full amount by entering into an accord and satisfaction.

Which of the following is not a requirement for an accord and satisfaction to be enforceable?

The parties seek prior judicial approval of the accord and satisfaction.

Which of the following is an accurate statement regarding the performance of a duty a person is already legally obligated to do?

The performance of a duty a person is already legally obligated to do is not good consideration for a present contract.

Which of the following is an accurate statement regarding the performance of an existing contractual duty?

The performance of an existing contractual duty is not good consideration.

Which of the following transactions involves a promise for a promise?

a bilateral contract

Which of the following is not an example of consideration?

a promise to perform an already-existing contract obligation

A unilateral contract involves a promise for ______.

an act

In a ______, the consideration for each promise is a return promise.

bilateral contract

An exception to the rule regarding liquidated debt occurs when the debtor offers ______ performance

different

Following an according, if the party making the promise fails to pay the agreed amount the other party may sue for _____.

full amount owed under original contract

Following an according, if the party making the promise fails to pay the agreed amount the the other party may sue for _____

full amount owed under original contract

A(n) ______ is not consideration.

illusory promise

In a(n) ______ debt, there is no dispute about the fact that money is owed and the amount of money owed

liquidated

Which of the following terms refers to debt for which there is no dispute between the parties about the fact that money is owed and the amount of money owed?

liquidated debt

An illusory promise is ______.

not a promise at all

An accord and satisfaction is an arrangement between contracting parties whereby ______.

one party substitutes a different performance for his or her original duty under the contract

One exception to the contract rule requiring consideration is ______.

promissory estoppel

A court will enforce one party's promise only if ______.

the other party promised something in exchange

In a ______, one party's consideration is the promise, and the other party's consideration is the act.

unilateral contract

In a(n) ______ debt, the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.

unliquidated

Which of the following terms refers to a situation where the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount?

unliquidated debt

A promise to do something you are already legally obligated to do is not ______.

valid consideration