Question 1

Gratuitous promises are made without consideration.

Accepted Answer

A) True 
 B)False

Question 2

All gratuitous promises are unenforceable.

Accepted Answer

A) True 
 B)False

Question 3

Should promissory or equitable estoppel only be used as a defence?

Accepted Answer

The doctrine of promissory or equitable

Question 4

What is the effect of sealing a contractual document?

Accepted Answer

A seal is a mark that is placed on a wri

Question 5

Motive is irrelevant to consideration.Explain.

Accepted Answer

Consideration is the price that one pers

Question 6

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 7

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 8

James does some work for Jim.Jim refuses to pay on the grounds that not all the work was done.Jack takes Jim to court and the judge says Jack is entitled to a quantum meruit.This means that

Accepted Answer

A) the parties will agree on the appropriate price. 
B) a dispute regarding the price should be resolved by arbitration. 
C) Jim must pay a reasonable amount for the services rendered. 
D) a price will be fixed for the work done. 
E) Jack is entitled to his expenses. 
A) the parties will agree on the appropriate price. 
B) a dispute regarding the price should be resolved by arbitration. 
C) Jim must pay a reasonable amount for the services rendered. 
D) a price will be fixed for the work done. 
E) Jack is entitled to his expenses.

Question 9

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 10

A document made under seal does not require consideration.

Accepted Answer

A) True 
 B)False

Question 11

Use the fact situation in Q10 to answer the related question that follows. The principle of law that arises out of the fact situation above was meant to overcome an earlier principle of law that stated that

Accepted Answer

A) payment of a lesser sum terminates the contract. 
B) a contract does not need consideration at all. 
C) a contract is terminated by performance. 
D) payment of a lesser sum in satisfaction of a greater sum is no payment at all. 
E) none of the above 
A) payment of a lesser sum terminates the contract. 
B) a contract does not need consideration at all. 
C) a contract is terminated by performance. 
D) payment of a lesser sum in satisfaction of a greater sum is no payment at all. 
E) none of the above

Question 12

Even when offer and acceptance and consideration are present,there may be no enforceable contract if

Accepted Answer

A) the subject of the contract is too trivial. 
B) there were no witnesses present at the signing of the contract. 
C) the contract is not in writing. 
D) there is no intent to create legal relations. 
E) the consideration is not adequate. 
A) the subject of the contract is too trivial. 
B) there were no witnesses present at the signing of the contract. 
C) the contract is not in writing. 
D) there is no intent to create legal relations. 
E) the consideration is not adequate.

Question 13

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

Accepted Answer

Price is the corresponding obligation of

Question 14

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

Accepted Answer

A gratuitous promise is made without bar

Question 15

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 16

The concept of estoppel is where

Accepted Answer

A) the court stops a party from performing a contract. 
B) the terms of the contract require that one of the parties be stopped from performing a particular act. 
C) the promisee is stopped from denying the truth of a fact or statement. 
D) the court suspends the operation of the contract. 
E) the maker of a statement or promise is prevented by the courts from either denying the truth of the statement or going back on a promise. 
A) the court stops a party from performing a contract. 
B) the terms of the contract require that one of the parties be stopped from performing a particular act. 
C) the promisee is stopped from denying the truth of a fact or statement. 
D) the court suspends the operation of the contract. 
E) the maker of a statement or promise is prevented by the courts from either denying the truth of the statement or going back on a promise.

Question 17

A promise that is made without bargaining for or accepting anything in return is a

Accepted Answer

A) promissory estoppel. 
B) covenant. 
C) quantum meruit. 
D) consideration. 
E) gratuitous promise. 
A) promissory estoppel. 
B) covenant. 
C) quantum meruit. 
D) consideration. 
E) gratuitous promise.

Question 18

Nan promises not to sue Reg if he agrees to pay her $1000.Reg agrees to pay Nan $1000,but later discovers that she actually had no right to sue him.Is Reg bound to pay Nan?

Accepted Answer

As long as a party has an honest belief

Question 19

Mo agrees to provide lawn care services to Judith in preparation for a summer birthday party Judith is holding for family and friends.The agreement requires that Judith pay Mo $250.00 for three hours' work.After completing approximately half of the job,Mo requests that Judith pay him an extra $50.00 because the cost of gasoline used for the rider mower had gone up significantly that morning.Judith agrees to pay the additional $50.00.Is she legally liable to do so?

Accepted Answer

A) Yes she is,because she told Mo she would pay him and he finished the job on the basis of her promise. 
B) Yes she is,because the rising price of gas should be borne by Judith. 
C) No she isn't,because Mo had an existing contractual obligation to perform the services for $250.00 and there is no consideration for the subsequent agreement to pay $50.00 more. 
D) No she isn't,because Judith is promising to reward Mo for something he has previously done and the past consideration is no consideration. 
A) Yes she is,because she told Mo she would pay him and he finished the job on the basis of her promise. 
B) Yes she is,because the rising price of gas should be borne by Judith. 
C) No she isn't,because Mo had an existing contractual obligation to perform the services for $250.00 and there is no consideration for the subsequent agreement to pay $50.00 more. 
D) No she isn't,because Judith is promising to reward Mo for something he has previously done and the past consideration is no consideration.

Question 20

Promissory estoppel can be used as the basis for a lawsuit.

Accepted Answer

A) True 
 B)False

Exam 7: Formation of a Contract: Consideration and Intention

Gratuitous promises are made without consideration.

All gratuitous promises are unenforceable.

Should promissory or equitable estoppel only be used as a defence?

What is the effect of sealing a contractual document?

Motive is irrelevant to consideration.Explain.

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

James does some work for Jim.Jim refuses to pay on the grounds that not all the work was done.Jack takes Jim to court and the judge says Jack is entitled to a quantum meruit.This means that

A document made under seal does not require consideration.

Use the fact situation in Q10 to answer the related question that follows. The principle of law that arises out of the fact situation above was meant to overcome an earlier principle of law that stated that

Even when offer and acceptance and consideration are present,there may be no enforceable contract if

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

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

The concept of estoppel is where

A promise that is made without bargaining for or accepting anything in return is a

Nan promises not to sue Reg if he agrees to pay her $1000.Reg agrees to pay Nan $1000,but later discovers that she actually had no right to sue him.Is Reg bound to pay Nan?

Promissory estoppel can be used as the basis for a lawsuit.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

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

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

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

International Business Transactions

Electronic Commerce

Privacy

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