Question 1

For the doctrine of promissory estoppel to be applied, there must be no clear or definite promise.

Accepted Answer

A) True 
 B)False

Question 2

A promise is illusory when the contract terms express such uncertainty that the promisor has not definitely promised to do anything.

Accepted Answer

A) True 
 B)False

Question 3

EcoEnergy LLC files a suit against Fiber Optics Inc., claiming that the consideration for their contract is inadequate. Most likely, the court will

Accepted Answer

A)   evaluate the fairness of the bargain.
B)   ask "how much" consideration was given.
C)   not question the adequacy of consideration.
D)   not determine whether consideration was exchanged.E) A) and B)
F) A) and D)

Question 4

Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

Accepted Answer

A)   objectively worthy.
B)   precisely adequate.
C)   legally sufficient.
D)   practically sound.E) B) and C)
F) None of the above

Question 5

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

Accepted Answer

A) True 
 B)False

Question 6

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

Accepted Answer

A)   imposes a moral obligation on Kim to pay Leo.
B)   imposes no obligation on Kim unless she is satisfied with the job.
C)   is not sufficient consideration because it is not goods or money.
D)   is the consideration that creates Kim's obligation to pay Leo.E) B) and C)
F) A) and B)

Question 7

Fact Pattern 10-1 Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot.
Refer to Fact Pattern 10-1. Sports Bar's discount is legally sufficient consideration

Accepted Answer

A)   because it is a promise of something of value.
B)   only if Sports Bar adds a cash rebate.
C)   only if Tasty uses it.
D)   under no circumstances.E) A) and B)
F) A) and C)

Question 8

A preexisting duty may arise out of a previous contract.

Accepted Answer

A) True 
 B)False

Question 9

Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can

Accepted Answer

A)   recover the balance for lack of consideration.
B)   recover the balance because the consideration was past.
C)   recover the balance due to unforeseen events.
D)   not recover the balance.E) None of the above
F) A) and B)

Question 10

Under a contract with Red Wines, Sancho begins grading a terraced hillside for the planting of grapes. Halfway through the project, Sancho asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." Red agrees but later refuses to pay. Red's agreement to pay more is

Accepted Answer

A)   unenforceable because Sancho's performance was a preexisting duty.
B)   unenforceable because Red's promise was illusory.
C)   enforceable.
D)   unenforceable because Sancho's request modified the contract.E) B) and D)
F) A) and C)

Question 11

Fact Pattern 10-5 Brick and Carmen are in an auto accident. Brick offers Carmen $2,000 if she promises not to pursue her potential legal claim against Brick. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
Refer to Fact Pattern 10-5. In Carmen's suit against Brick to recover her repair and medical expenses, Carmen will most likely recover

Accepted Answer

A)   half the amount to pay the costs over what Brick already paid Carmen.
B)   nothing.
C)   the estimated amount to pay those costs and any other liability.
D)   the exact amount to pay those costs and no more.E) A) and B)
F) A) and C)

Question 12

Cindy, a real estate agent, sells her friend Doug's house without charging a commission. Weeks later in return Doug promises to give Cindy $1,000. This promise is not an enforceable contract because

Accepted Answer

A)   the house has already been sold-the consideration is past.
B)   selling the house was the agent's preexisting duty.
C)   selling the house was a foreseen difficulty.
D)   the promise of a payment of $1,000 is illusory.E) B) and D)
F) A) and B)

Exam 10: Consideration

Correct Answer
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Correct Answer
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A preexisting duty may arise out of a previous contract.

Correct Answer
verified

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

Correct Answer
verified

EcoEnergy LLC files a suit against Fiber Optics Inc., claiming that the consideration for their contract is inadequate. Most likely, the court will

Correct Answer
verified

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

Correct Answer
verified

For the doctrine of promissory estoppel to be applied, there must be no clear or definite promise.

Correct Answer
verified

A promise is illusory when the contract terms express such uncertainty that the promisor has not definitely promised to do anything.

Correct Answer
verified

Correct Answer
verified

Cindy, a real estate agent, sells her friend Doug's house without charging a commission. Weeks later in return Doug promises to give Cindy $1,000. This promise is not an enforceable contract because

Correct Answer
verified

Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

Correct Answer
verified

Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can

Correct Answer
verified

Exam 10: Consideration

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A preexisting duty may arise out of a previous contract.

Correct AnswerverifiedShow Answer

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

Correct AnswerverifiedShow Answer

EcoEnergy LLC files a suit against Fiber Optics Inc., claiming that the consideration for their contract is inadequate. Most likely, the court will

Correct AnswerverifiedShow Answer

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

Correct AnswerverifiedShow Answer

For the doctrine of promissory estoppel to be applied, there must be no clear or definite promise.

Correct AnswerverifiedShow Answer

A promise is illusory when the contract terms express such uncertainty that the promisor has not definitely promised to do anything.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Cindy, a real estate agent, sells her friend Doug's house without charging a commission. Weeks later in return Doug promises to give Cindy $1,000. This promise is not an enforceable contract because

Correct AnswerverifiedShow Answer

Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

Correct AnswerverifiedShow Answer

Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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