Question 1

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 2

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 3

Why does the law recognize that a promise made properly under the seal of the promisor does NOT require consideration to make it binding?

Accepted Answer

Signing under seal has always been consi

Question 4

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 5

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 6

On March 1,Al agrees to sell Barb his house for $250 000.Barb pays a deposit of $15 000,and they agree that title will transfer and the price will be paid on April 30.The agreement is signed by both parties under seal.What is the consideration on Barb's part?

Accepted Answer

A) the deposit of $15 000 
B) there is no consideration 
C) quantum meruit 
D) the seal 
E) the promise to pay the $250 000 
A) the deposit of $15 000 
B) there is no consideration 
C) quantum meruit 
D) the seal 
E) the promise to pay the $250 000

Question 7

Injurious reliance and equitable estoppel are two sides of the same coin.Explain.

Accepted Answer

The U.S.principle of injurious reliance

Question 8

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

Accepted Answer

A gratuitous promise is made without bar

Question 9

Jack and Jill are friends.Jack agrees to mow Jill's lawn and Jill agrees to pay Jack $50.00.Jill wants the lawn mowed by April 1.Jill returns on April 3 and finds that the lawn has not been mowed.Jill,who is entertaining the next day,goes to Jack and promises that if he mows the lawn that day,she will give him an additional $20.00.Jack mows the lawn but Jill refuses to pay him the additional $20.00.Which of the following is TRUE?

Accepted Answer

A) Jack can sue Jill for breach of contract. 
B) Jill has no obligation to pay because the promise to pay the additional $20.00 was not supported by fresh consideration.Jack had a pre-existing legal duty to mow the lawn. 
C) There was no offer and acceptance. 
D) Jill has an obligation to pay the additional $20.00 because a legally enforceable promise to pay was made. 
E) Jill made an offer and Jack accepted it,so a contract was created. 
A) Jack can sue Jill for breach of contract. 
B) Jill has no obligation to pay because the promise to pay the additional $20.00 was not supported by fresh consideration.Jack had a pre-existing legal duty to mow the lawn. 
C) There was no offer and acceptance. 
D) Jill has an obligation to pay the additional $20.00 because a legally enforceable promise to pay was made. 
E) Jill made an offer and Jack accepted it,so a contract was created.

Question 10

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

Exam 7: Formation of a Contract: Consideration and Intention

Which of the following is NOT true about consideration?

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

Why does the law recognize that a promise made properly under the seal of the promisor does NOT require consideration to make it binding?

The concept of estoppel is where

A gratuitous promise differs from a contract in that

On March 1,Al agrees to sell Barb his house for $250 000.Barb pays a deposit of $15 000,and they agree that title will transfer and the price will be paid on April 30.The agreement is signed by both parties under seal.What is the consideration on Barb's part?

Injurious reliance and equitable estoppel are two sides of the same coin.Explain.

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

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

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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