CH 15
Today, how many states will still enforce contract under seal even if it is not supported by consideration?
10
If a business does inadvertently cash a "paid-in-full" check, it has _______ days to offer the debtor repayment in the same amount.
90
Which of the following statements are true of legal consideration? (Check all that apply.)
A court will not regulate the amount of consideration in the absence of fraud. Any consideration, however small, will support a promise.
Which of the following is a correct statement regarding a promise to refrain from doing something you are legally entitled to do?
A promise to not do something you are legally entitled to do is sufficient consideration for a contract.
Andy is an artist and Jane runs a famous art gallery. Jane calls Andy and tells him she has seen some of his work and likes it. She tells him to bring his newest paintings to her gallery and says "I promise that if I like them, I will show them in my gallery." Which of the following is true? (Check all that apply.)
Andy has no contract to compel Jane to show his paintings. Jane made an illusory promise.
Anna promises Elsa that she will clean Elsa's house and Elsa promises Anna she will pay Anna $100 when Anna is done. Which of the following is true? (Check all that apply)
Anna's promise in exchange for Elsa's promise is sufficient consideration. Anna and Elsa's promises are an exchange of something of value. Anna and Elsa have formed a bilateral contract.
Scott needs his cars washed by tomorrow afternoon, so he calls Betty and tells her he'll pay her $100 if she washes both cars the next morning. Betty tells Scott, "I'll do it if I wake up in time." Which of the following statements is true?
Betty has not promised to wash Scott's cars.
Sheila tells Ed that if Ed fixes her air conditioner by the end of the day, Sheila will pay Ed $500. Which of the following is true?
Ed and Sheila have entered into a valid unilateral contract.
William tells his neighbor George that he will give George a job as his butler if George promises to drop out of college. Which of the following is true?
George's promise to refrain from going to college is consideration.
When does the court look at the adequacy of consideration in a contract? (Check all that apply.)
If the court believes fraud occurred If the court thinks that undue influence was used
Which of the following is true about a unilateral contract? (Check all that apply.)
It is a real contract because it is a mutual exchange of value. It is a promise in exchange for performance.
Identify the true statements about past consideration. (Check all that apply.)
It is enforceable to the extent necessary to avoid injustice. It is enforceable if it was given with the expectation of future payment.
Which of the following statements is true about past consideration? (Check all that apply.)
It is not a real consideration. It refers to a situation where one party provides value before the promise is made.
Joan teaches Bobby how to shoot an outside jump shot in basketball. Bobby becomes such a good basketball player he gets a full scholarship to college and becomes highly sought after by professional teams. Just before he signs a contract with a pro team, Bobby tells Joan, "I promise I'll give you $500,000 when I sign that contract. I owe you for teaching me that jump shot." Which of the following is true?
Joan's work with Bobby in the past is not consideration to enforce Bobby's promise.
Patty and Mario dispute whether Patty owes Mario $1,000. Patty asks Mario if she can give him her gold necklace, worth $500, in full payment of the debt. Mario agrees and takes the gold necklace. Which of the following is true?
Mario taking the necklace constitutes an accord and satisfaction.
What are the conditions for promissory estoppel to occur? (Check all that apply.)
One party makes a promise and knows the other party will rely on it. A party reasonably relies on another's promise. To avoid an injustice, the promise must be enforced.
Phil tells Gloria that if she works for him full time, he'll pay her $1,000 a week. As a result and based on Phil's promise, Gloria quits her job at the department store and puts a down payment on a car. When Gloria shows up at Phil's to start work, Phil tells her he's changed his mind about the full time job. What are Gloria's options?
The best way to enforce Phil's promise is to assert promissory estoppel.
Walter contracts to purchase Marie's mansion and estate for $50,000. Marie's mansion and estate has a property tax value of $1 million. There is no fraud or undue influence involved in the transaction. Which of the following is an incorrect statement regarding the enforcement of this contract?
The court will find the $50,000 an insufficient amount of consideration and cancel the contract.
Which of the following is true about a partial payment of a liquidated debt?
The debt remains outstanding.
Forrest hires Nadine to turn his basement into a family room for $50,000. About halfway through, Nadine discovers for the first time that the wood in the floor of the basement was riddled with mold and all the wood had to be removed and replaced. Nadine tells Forrest that it will cost him an additional $10,000 for this work. Which of the following is true?
The mold was an unforeseen circumstance to the basement work, and it was lawful for Nadine to charge Forrest for the additional work.
Bobby built a dog house for Rhonda and Rhonda agreed to pay Bobby $1,500. Rhonda sends Bobby a check for $1,000 with a note that says "this is all I can pay you." Bobby cashes the check. Which of the following is true? (Check all that apply.)
There is no dispute that Rhonda owes Bobby $1,500. The $1,500 is liquidated debt. Rhonda does have to pay Bobby the remaining $500.
Sam takes photos at the Callie's wedding. Sam thinks Callie owes him $1,000 for the wedding, while Callie think she only owes Sam $750. Callie sends Sam a check for $750. Which of the following is true?
This is an unliquidated debt.
Identify exceptions to the preexisting duty rule. (Check all that apply.)
UCC Article 2 (sale of goods) Unforeseen circumstances Additional work required to fulfill the promised obligation
Wanda works for Humongous Corporation. Part of her job, for which she was hired 10 years ago, is to prepare a monthly report of all transactions in her department. After 10 years, Wanda tells Humongous that she wants another $500 a month to prepare the reports. Which of the following is true?
Wanda has an existing contractual duty to prepare the report.
Which of the following is true about a bilateral contract? (Check all that apply.)
a promise in exchange for a promise can be consideration a promise to perform has value
Which of the following is not an type of consideration?
accepting a gift
Under the UCC, writing "paid in full" on a check for less than the full amount of the debt owed will not be an accord and satisfaction unless the creditor inadvertently cashes the check and waits longer than 90 days to offer the debtor repayment in the same amount, or unless the
check is sent to a special address for disputed amounts per the creditor's request.
A promise to refrain from doing something is sufficient: _______.
consideration
In some cases, if past consideration was given with the expectation of ______ payment, the court may enforce the promise.
future
When a person promises that they may do something if they want to, they have made an ______ promise. Such a promise is not sufficient consideration.
illusory
If there is no dispute that money is owed, then the debt is ______. (Choose the BEST answer)
liquidated
For a(n) ______ debt, if the debtor offers to pay less money than is owed as full payment and the creditor agrees, there is not a(n)______, and even if the debtor pays the money agreed to, the creditor may nevertheless sue for the balance it believes is owed.
liquidated; accord
Consideration, as a required contractual element, can be: ________. (Check all that apply.)
money service
Leslie sold Tom her house for $5,000, but lied to Tom because she did not actually own the house. The court is likely to: _______.
not enforce the contract
Performance of a duty you are obligated to do under the law is not good consideration. This is known as the ______ duty rule.
preexisting
Promissory estoppel and contracts under ______ are two exceptions to the common law rule requiring consideration.
seal
If the parties disagree about the amount of money owed, the debt is ______.
unliquidated