Worksheet 13.1: Elements and Adequacy of Consideration

6. Carmen agrees to cook twenty dinners for Hal. In exchange, Hal will repair all of the plumbing in Carmen's house. Carmen has offered legally sufficient consideration because Carmen has promised something of value. a. True b. False

a. True

9. Something does not have to be of direct economic or financial value to be considered legally sufficient consideration. a. True b. False

a. True

10. Something must be of established market value to be considered legally sufficient consideration. a. True b. False

b. False

4. Something of legally sufficient value may consist of a promise to do something that one has no ______ legal duty to do.

prior

1. Consideration can be defined as ______.

something of value given in exchange for a promise.

5. Something of legally sufficient value may consist of the performance of an action that one is otherwise not ___(1)___ to undertake. Something of legally sufficient value may consist of ___(2)___ from an action that one has a legal right to undertake (called a forbearance).

(1) obligated (2) refraining

3. Drag and drop the appropriate words to fill in The Elements of Consideration. 1. Legal value: Something of legally ___(1)___ value must be given in exchange for a promise. This may consist of a promise, a ___(2)___ or a forbearance. 2. Bargained-for exchange: There must be a bargained-for ___(3)___.

(1) sufficient (2) performance (3) exchange

2. Consideration is the ___(1)___ given in exchange for a promise. A contract cannot be formed without ___(2)___ consideration.

(1) value (2) sufficient

7. The second element of consideration is that it must provide the basis for the bargain, so the item of value must be given or promised by the promisor in return for the promisee's: a. promise, performance, or promise of performance b. promise, incomplete performance, or promise of complete performance c. agreement, payment, or statement of intent

a. promise, performance, or promise of performance

12. Freedom of contract is absolute even in the presence of undue influence. a. True b. False

b. False

11. Shockingly inadequate consideration can indicate the existence of what exceptions? Choose three: a. Ignorance b. Undue influence c. Duress d. Unawareness e. Fraud f. Mistake of law

b. Undue influence c. Duress e. Fraud

8. Dewitt tells his daughter: "In consideration of the fact that you are not as wealthy as your sisters, I'm going to give you $100,000." Is the element of bargained-for exchange present here? a. Yes, because Dewitt included the term "consideration." b. Yes, because Dewitt made clear why he was giving her $100,000. c. No, because in fact no consideration has been given.

c. No, because in fact no consideration has been given.