Question 1

When we say that consideration is the price for a promise,what does price mean?

Accepted Answer

Price is the corresponding obligation of

Question 2

Use the fact situation in Q25 to answer the related question that follows. Review the fact situation above and now assume that on November 1,B said to A,"Rather than paying me the full $5000.00,just pay me $3500.00 and give me your watch,and your debt will be cancelled." A's watch is a cheap one worth $5.00.A gives B the watch and pays him the $3500.00.
In this situation,

Accepted Answer

A) B can recover the $1500.00 from A because the contract was to repay a debt of $3500.00. 
B) B cannot recover the $1500.00 from A because A's watch is fresh consideration. 
C) B is still estopped by promissory estoppel from collecting the $1500.00 from A. 
D) there is still no fresh consideration for B's promise to reduce A's debt to $3500.00. 
E) the watch is meaningless and A will still owe B $1500.00. 
A) B can recover the $1500.00 from A because the contract was to repay a debt of $3500.00. 
B) B cannot recover the $1500.00 from A because A's watch is fresh consideration. 
C) B is still estopped by promissory estoppel from collecting the $1500.00 from A. 
D) there is still no fresh consideration for B's promise to reduce A's debt to $3500.00. 
E) the watch is meaningless and A will still owe B $1500.00.

Question 3

A,at the request of B,enters into a contract to buy a horse from B for a certain price.Just after entering into the contract,B tells A that the horse is sound and healthy.Later A discovers that,in fact,the horse is in ill health.In this situation,B's statement to A that the horse was sound and healthy

Accepted Answer

A) is partly fresh and past consideration so as to not make B's promise binding. 
B) is partly fresh and partly past consideration so as to make B's promise binding. 
C) is past consideration so as to not make B's promise binding 
D) is fresh consideration so as to make B's promise binding 
E) all of the above 
A) is partly fresh and past consideration so as to not make B's promise binding. 
B) is partly fresh and partly past consideration so as to make B's promise binding. 
C) is past consideration so as to not make B's promise binding 
D) is fresh consideration so as to make B's promise binding 
E) all of the above

Question 4

Gratuitous promises are made without consideration.

Accepted Answer

A) True 
 B)False

Question 5

The reasonable amount that a person deserves to be paid for goods and services provided to the person requesting them is called

Accepted Answer

A) gratuitous promise. 
B) quantum meruit. 
C) damages. 
D) covenant. 
E) promissory amount. 
A) gratuitous promise. 
B) quantum meruit. 
C) damages. 
D) covenant. 
E) promissory amount.

Question 6

Jack walks into a bar.He is a little tipsy.The waitress pours him a pint of beer and he pays with all the money he has on him.He makes this statement to the waitress: "Sorry I can't tip you today,but you know what,I have this lottery ticket,and if I win,I'll split it with you." The waitress says,"No problem,Jack." Jack later makes a copy of the ticket for the waitress.The next day Jack receives a call from Stephanie,the waitress,who tells him that she checked the numbers and that he has won $1 million.Stephanie asks,"Our deal is on right?" Jack says,"What deal?" She says,"You promised to split the winning ticket with me." He says,"Really?" Which of the following is true?

Accepted Answer

A) Jack will have to split the proceeds with Stephanie on a quantum meruit basis. 
B) Stephanie can sue Jack for breach of contract if she does not get her share of the ticket. 
C) Jack promised to split the winning ticket with Stephanie and she accepted,so a valid contract was created. 
D) No contract arose because there was no intention on the part of Jack to enter into legal relations with Stephanie. 
E) A contract did not arise because Jack's statement was not an offer. 
A) Jack will have to split the proceeds with Stephanie on a quantum meruit basis. 
B) Stephanie can sue Jack for breach of contract if she does not get her share of the ticket. 
C) Jack promised to split the winning ticket with Stephanie and she accepted,so a valid contract was created. 
D) No contract arose because there was no intention on the part of Jack to enter into legal relations with Stephanie. 
E) A contract did not arise because Jack's statement was not an offer.

Question 7

Generally speaking,it is up to the court to ensure that a fair bargain was made; that is,to ensure that the consideration for a promise is adequate.

Accepted Answer

A) True 
 B)False

Question 8

Why is a promise to perform a pre-existing legal duty not consideration?

Accepted Answer

A person who owes a pre-existing legal d

Question 9

What is meant by "the meeting of minds"? How significant is it to the formation of contracts?

Accepted Answer

When parties are entering into a contrac

Question 10

A promise by a creditor to accept less than full payment from a debtor is

Accepted Answer

A) unenforceable because the creditor did not provide consideration. 
B) enforceable because the promisee accepts the offer. 
C) a bilateral contract. 
D) unenforceable because it is a gratuitous promise. 
E) enforceable because it gives rise to a contract. 
A) unenforceable because the creditor did not provide consideration. 
B) enforceable because the promisee accepts the offer. 
C) a bilateral contract. 
D) unenforceable because it is a gratuitous promise. 
E) enforceable because it gives rise to a contract.

Question 11

Use the fact situation in Q10 to answer the related question that follows. The principle of contract law that arises in the fact situation above is

Accepted Answer

A) revocation. 
B) fraudulent misrepresentation. 
C) deceit. 
D) fresh consideration. 
E) promissory estoppel. 
A) revocation. 
B) fraudulent misrepresentation. 
C) deceit. 
D) fresh consideration. 
E) promissory estoppel.

Question 12

Allen is Harry's older brother.Yesterday,Allen asked Harry,an experienced plumber,to fix a leaky pipe below the sink of Allen's main floor washroom.Knowing that Allan had just lost his job and wanting to help him out,Harry did the work,which took him almost half a day to complete.The next day,Harry and Allen had an argument,and in anger Harry told Allen he expected to be paid for his work.In this situation,

Accepted Answer

A) the law will imply a promise by Allen to pay Harry because it deals with supply of services. 
B) the law will imply a promise by Allen to pay Harry because Allen has been unjustly enriched. 
C) the law will imply a promise by Allen to pay Harry because they are family members. 
D) the law will not imply a promise by Allen to pay Harry because they are family members. 
E) the law will imply a promise by Allen to pay Harry because Harry performed services for Allen. 
A) the law will imply a promise by Allen to pay Harry because it deals with supply of services. 
B) the law will imply a promise by Allen to pay Harry because Allen has been unjustly enriched. 
C) the law will imply a promise by Allen to pay Harry because they are family members. 
D) the law will not imply a promise by Allen to pay Harry because they are family members. 
E) the law will imply a promise by Allen to pay Harry because Harry performed services for Allen.

Question 13

An intention to create legal relations exists if

Accepted Answer

A) the promisor and the promisee have identified all the consideration involved in the contract. 
B) there is an offer,acceptance,and consideration. 
C) a reasonable person would believe that the parties intended to be bound by the contract. 
D) the court examines the facts and determines that the parties intended to enter into legal relations. 
E) the parties have capacity to enter into a contract. 
A) the promisor and the promisee have identified all the consideration involved in the contract. 
B) there is an offer,acceptance,and consideration. 
C) a reasonable person would believe that the parties intended to be bound by the contract. 
D) the court examines the facts and determines that the parties intended to enter into legal relations. 
E) the parties have capacity to enter into a contract.

Question 14

Use this fact situation to answer the related questions that follow. On January 1,A and B enter into a contract under which B agrees to renovate A's house by September 1 for $60 000.00.By June 2,B has not yet started the renovations and A is getting worried,so A tells B that he will pay him an extra $5000.00 if B completes the renovations on time.B completes the renovations by September 1st and now asks A for $65 000.00.
In this situation,

Accepted Answer

A) A's promise to pay B an extra $5000.00 is not supported by fresh consideration. 
B) A's promise to pay B an extra $5000.00 is made before the contract is over. 
C) the consideration for the contract on January 1 is $60 000.00. 
D) there was a contract on January 1 that must be performed by September 1. 
E) all of the above 
A) A's promise to pay B an extra $5000.00 is not supported by fresh consideration. 
B) A's promise to pay B an extra $5000.00 is made before the contract is over. 
C) the consideration for the contract on January 1 is $60 000.00. 
D) there was a contract on January 1 that must be performed by September 1. 
E) all of the above

Question 15

Use the fact situation in Q23 to answer the related question that follows. Review the fact situation above and now assume that instead of simply promising to pay B an extra $5000.00,A says,"I'll pay you an extra $5000.00 if you fix that cracked board in my fence.Also assume that B completes the job by September 1 and fixes the cracked board.
In this situation,

Accepted Answer

A) there is still no fresh consideration from B,so A does not owe the extra $5000.00. 
B) since B completed the contract on September 1st,B is only entitled to the original price of $60 000.00. 
C) the contract did not change on June 2,so A does not owe the extra $5000.00. 
D) the promise to fix the cracked board and the fixing of it is fresh consideration and B is entitled to the extra $5000.00. 
E) the promise to fix the cracked board and the fixing of it was a gratuitous promise so B is not entitled to the extra $5000.00. 
A) there is still no fresh consideration from B,so A does not owe the extra $5000.00. 
B) since B completed the contract on September 1st,B is only entitled to the original price of $60 000.00. 
C) the contract did not change on June 2,so A does not owe the extra $5000.00. 
D) the promise to fix the cracked board and the fixing of it is fresh consideration and B is entitled to the extra $5000.00. 
E) the promise to fix the cracked board and the fixing of it was a gratuitous promise so B is not entitled to the extra $5000.00.

Question 16

Is it possible for a person to enter into an enforceable contract without receiving any benefit from the agreement?

Accepted Answer

It is possible for a person to enter int

Question 17

When one party to a concluded contract promises the other party something more,why is the new promise not binding?

Accepted Answer

There is no fresh co

Question 18

Which of the following would a court NOT regard as consideration on the part of a party to a contract?

Accepted Answer

A) a promise to pay for what the other party has already done 
B) giving up what the party honestly believes is a right to sue 
C) a promise to pay money to the other party in the future 
D) a promise to pay money to a third party who is not a party to the contract 
E) money paid to the other party 
A) a promise to pay for what the other party has already done 
B) giving up what the party honestly believes is a right to sue 
C) a promise to pay money to the other party in the future 
D) a promise to pay money to a third party who is not a party to the contract 
E) money paid to the other party

Question 19

What is a gratuitous promise? Can such a promise support a contract?

Accepted Answer

A gratuitous promise is made without bar

Question 20

The principle of injurious reliance is

Accepted Answer

A) the loss or harm that is suffered by a promisee who,to his or her detriment,relies on a gratuitous promise. 
B) the contractual relationship that arises between an injured party and the person or persons on whom this injured party relies. 
C) the injury that a person in a contractual relationship suffers when there is a breach of contract. 
D) the amount of compensation that is awarded to a party where there is a breach of contract. 
E) the personal injury that is suffered by persons who are involved in contractual situations. 
A) the loss or harm that is suffered by a promisee who,to his or her detriment,relies on a gratuitous promise. 
B) the contractual relationship that arises between an injured party and the person or persons on whom this injured party relies. 
C) the injury that a person in a contractual relationship suffers when there is a breach of contract. 
D) the amount of compensation that is awarded to a party where there is a breach of contract. 
E) the personal injury that is suffered by persons who are involved in contractual situations.

Exam 6: Formation of a Contract: Consideration and Intention

When we say that consideration is the price for a promise,what does price mean?

Gratuitous promises are made without consideration.

The reasonable amount that a person deserves to be paid for goods and services provided to the person requesting them is called

Generally speaking,it is up to the court to ensure that a fair bargain was made; that is,to ensure that the consideration for a promise is adequate.

Why is a promise to perform a pre-existing legal duty not consideration?

What is meant by "the meeting of minds"? How significant is it to the formation of contracts?

A promise by a creditor to accept less than full payment from a debtor is

Use the fact situation in Q10 to answer the related question that follows. The principle of contract law that arises in the fact situation above is

An intention to create legal relations exists if

Is it possible for a person to enter into an enforceable contract without receiving any benefit from the agreement?

When one party to a concluded contract promises the other party something more,why is the new promise not binding?

Which of the following would a court NOT regard as consideration on the part of a party to a contract?

What is a gratuitous promise? Can such a promise support a contract?

The principle of injurious reliance is

Law, society, and Business

The Machinery of Justice

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

Privacy

Breach of Contract and Its Remedies

Filters