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

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

Accepted Answer

Price is the corresponding obligation of

Question 3

A promise made properly under the seal of the promisor does not require consideration to make it binding.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Why is an intention to create a legally binding contract an essential element of a valid enforceable contract?

Accepted Answer

Since parties do not ordinarily think ab

Question 6

Gratuitous promises are made without consideration.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

There is no contract unless each party intends to create a legally enforceable contract.

Accepted Answer

A) True 
 B)False

Question 10

The contractual requirement of consideration provides that

Accepted Answer

A) the contract must be given careful consideration before it is entered into. 
B) the offeror must pay cash for the offeree's promise to perform an act. 
C) an offeree must pay cash for the offeror's promise to perform an act. 
D) each party must give something of value in exchange. 
E) what is exchanged by the parties must be of equal value. 
A) the contract must be given careful consideration before it is entered into. 
B) the offeror must pay cash for the offeree's promise to perform an act. 
C) an offeree must pay cash for the offeror's promise to perform an act. 
D) each party must give something of value in exchange. 
E) what is exchanged by the parties must be of equal value.

Question 11

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 12

Consideration is

Accepted Answer

A) the price that is paid for the promise of another. 
B) a special kind of gratuitous promise. 
C) the acceptance of an offer. 
D) the offer that is made to another. 
E) a special kind of acceptance. 
A) the price that is paid for the promise of another. 
B) a special kind of gratuitous promise. 
C) the acceptance of an offer. 
D) the offer that is made to another. 
E) a special kind of acceptance.

Question 13

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

Accepted Answer

The doctrine of promissory or equitable

Question 14

The reasonable bystander test is

Accepted Answer

A) a test that employs witnesses to make candid observations about contract cases. 
B) the test that is used by the courts to determine whether parties intended to enter into legal relations with each other. 
C) the test that employs non-specialists as members of a jury in contract cases. 
D) the test that the parties can use to determine who is in breach of contract. 
E) the test that the parties can use to determine compensation in contract cases. 
A) a test that employs witnesses to make candid observations about contract cases. 
B) the test that is used by the courts to determine whether parties intended to enter into legal relations with each other. 
C) the test that employs non-specialists as members of a jury in contract cases. 
D) the test that the parties can use to determine who is in breach of contract. 
E) the test that the parties can use to determine compensation in contract cases.

Question 15

James does some work for Jim.Jim refuses to pay on the grounds that not all the work was done.James takes Jim to court and the judge says James 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) James 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) James is entitled to his expenses.

Question 16

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 17

Where there is an existing contract between two parties and,to ensure performance,one party promises to give more consideration than under the original contract,the new promise is binding and must be performed.

Accepted Answer

A) True 
 B)False

Question 18

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 19

A covenant recorded in a document containing a wax seal,showing that the covenantor adopted the document as his act and deed,is referred to as a document under seal.

Accepted Answer

A) True 
 B)False

Question 20

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.

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?

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

A promise made properly under the seal of the promisor does not require consideration to make it binding.

Why is an intention to create a legally binding contract an essential element of a valid enforceable contract?

Gratuitous promises are made without consideration.

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.

There is no contract unless each party intends to create a legally enforceable contract.

The contractual requirement of consideration provides that

The principle of injurious reliance is

Consideration is

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

The reasonable bystander test is

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

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.

Where there is an existing contract between two parties and,to ensure performance,one party promises to give more consideration than under the original contract,the new promise is binding and must be performed.

A covenant recorded in a document containing a wax seal,showing that the covenantor adopted the document as his act and deed,is referred to as a document under seal.

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

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

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