Question 1

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 2

Use this fact situation to answer the related questions that follow. On June 1,A,a debtor,loans $5000.00 from B,a creditor,and agrees to repay it by December 1 of the same year.On November 1,B says to A,"Rather than paying me the full $5000.00,just pay me $3500.00 and your debt will be cancelled." A pays the $3500.00,but B now changes his mind and tells A that he wants A to pay him the balance of $1500.00.
In this situation at common law,

Accepted Answer

A) B cannot recover the extra $1500.00,because he agreed to reduce the amount of the debt. 
B) B is estopped by promissory estoppel from recovering the $1500.00. 
C) B can recover the extra $1500.00 on the basis of quantum meruit. 
D) B can recover the extra $1500.00 under present-day legislation. 
E) B can recover the extra $1500.00 since his promise lacks fresh consideration. 
A) B cannot recover the extra $1500.00,because he agreed to reduce the amount of the debt. 
B) B is estopped by promissory estoppel from recovering the $1500.00. 
C) B can recover the extra $1500.00 on the basis of quantum meruit. 
D) B can recover the extra $1500.00 under present-day legislation. 
E) B can recover the extra $1500.00 since his promise lacks fresh consideration.

Question 3

Estoppel or promissory estoppel was developed to overcome the principle that payment of a lesser sum in satisfaction of a greater sum is no payment at all.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following is NOT true about consideration?

Accepted Answer

A) Consideration must be of some value in the eyes of the law. 
B) A gratuitous promise is not supported by consideration. 
C) Consideration has to be adequate. 
D) Consideration must be sufficient. 
E) Consideration can be in the form of a detriment to a party. 
A) Consideration must be of some value in the eyes of the law. 
B) A gratuitous promise is not supported by consideration. 
C) Consideration has to be adequate. 
D) Consideration must be sufficient. 
E) Consideration can be in the form of a detriment to a party.

Question 6

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 7

A gratuitous promise differs from a contract in that

Accepted Answer

A) a gratuitous promise cannot lapse. 
B) it does not require the payment of money to the offeror by the offeree. 
C) consideration flows only in one direction. 
D) a gratuitous promise cannot be revoked. 
E) the terms of a gratuitous promise are not precise enough to be binding. 
A) a gratuitous promise cannot lapse. 
B) it does not require the payment of money to the offeror by the offeree. 
C) consideration flows only in one direction. 
D) a gratuitous promise cannot be revoked. 
E) the terms of a gratuitous promise are not precise enough to be binding.

Question 8

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 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

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.

Question 11

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 12

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.

Exam 7: Formation of a Contract: Consideration and Intention

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

Estoppel or promissory estoppel was developed to overcome the principle that payment of a lesser sum in satisfaction of a greater sum is no payment at all.

An intention to create legal relations exists if

Which of the following is NOT true about consideration?

A gratuitous promise differs from a contract in that

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

The principle of injurious reliance is

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.

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

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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