Exam 9: Consideration and Cyber-Payments

While the Washington family was gone for the weekend,their home was broken into and robbed.Manny,a professional boxer who lived next door,saw the thief,apprehended him,and forced him to return the stolen possessions.When the Washingtons returned,Mr.Washington told Manny that he would give him $5,000 for his efforts.The next morning,Mr.Washington gave Manny a check for $2,000.What result?

The issue in the Classic Case,Hamer v.Sidway,involved the question of legal detriment.

The UCC requires the use of the seal in all sale-of-goods contracts.

State laws known as ________ limit the time within which a party is allowed to bring suit to collect a debt.

Contracts created by promissory estoppel are generally considered agreements without consideration.

The ________ outlaws the unauthorized transfer,possession,or use of a means of identifying another person to violate federal law.

Uncle Joe promises Mary a new car on her birthday.Uncle Joe's promise constitutes legally sufficient consideration.

Mullroy has complained to the local police about the vandalism in his neighborhood.However,the police have taken little interest in curbing the vandalism,much to Mullroy's disappointment.Determined to resolve the problem,Mullroy invites the local sheriff to his daughter's birthday party and offers him free weekend dinners at Mullroy's family restaurant if the sheriff promises to look into the vandalism problem.Discuss the nature of consideration and contract in this case.

Sergie orally agrees to pay Zenith Finance Co.a $300 loan debt that was discharged in bankruptcy after Zenith told Sergie that repaying the debt would help him "rebuild his credit",since Zenith would report his payments to credit reporting agencies.Discuss the case.

________ is the mutual agreement of less than what has been billed to the debtor.

Andrew's neighbor,Charles,is selling drugs from his home.Since Andrew is concerned about the well-being of his own family,he offers to pay Charles $60,000 to stop selling drugs.Charles stops,but Andrew refuses to pay.Can Charles successfully sue Andrew to force him to pay the $60,000? Explain.

Pantia agreed to write software codes for "a reasonable price" for a video game being produced by Mindbinder,Inc.When Pantia submitted a bill for $5,000,Mindbinder believed that a reasonable amount for the work was $3,000 and sent Pantia a check for that amount with a notation on the check,"Payment in full." Discuss the case.

Jackie borrowed $1,000 from Uncle John in 1975,with repayment due in 1977.Jackie never repays the loan,and Uncle John never attempts to collect it.In 2004,Jackie writes Uncle John a letter stating that she is sorry that she did not repay the debt and encloses a check for $100 toward repayment.Uncle John cashes the check.He dies of a heart attack one week later.Uncle John's heirs find the letter and sue Jackie to collect the remaining $900 balance.Analyze the case.

Monty quit his $150,000 annual salary job with Computer Associates in Monterey,California,and moved with his family to Fairfield,Connecticut based upon an oral promise by Software Power to provide reimbursement of all moving expenses and at least three years employment at an annual salary of $250,000 per year.One month after moving,and before being reimbursed for moving,Monty's employment with Software Power is terminated due to a reduction in force caused by lower-than-expected product sales.Can Monty successfully sue Software Power?

A(n)________ is an acceptance of an agreement not to sue supported by consideration,which terminates one's right to continue any lawsuit,presently or in the future,on grounds described in the agreement.

Assuming he has the right,Tom's promise ________,also called ________,is ________ when it is supported by ________.

Matrix,Inc.is considering opening a restaurant in Smallville and has located a prime vacant land location that is for sale.Matrix wants to do some market research and obtain financing for construction before purchasing the land,but is concerned that a competitor,Zion,Inc. ,will purchase the land if Matrix does not act immediately.What legal steps should Matrix take,short of purchasing the land now,to prevent Zion from acting before them? Explain.

Edwin,Marketing VP of Amalgamated Sales,Inc. ,writes a letter dated August 1 to Bargain Stores,Inc.offering to sell candy to Bargain Stores at $50 per case for the next thirty days.Bargain Stores then contracts with local retailers based on the offer from Amalgamated.Ten days later,Amalgamated receives an offer from Dandy Stores,Inc.to purchase this same candy at a price of $75 per case.Can Amalgamated withdraw its offer to Bargain Stores?

Tim's mother was concerned that Tim would develop cancer if he used tobacco,so she promised Tim $10,000 if he would refrain from any use of tobacco until age 30.Tim did so,but his mother refused to give him the $10,000.Does Tim have a legal right to the $10,000? Explain.

Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 cash in order to have a rapid sale.Later,Lisa insists that she may rescind this agreement since the agreed price was 30% below fair market value.Lisa may: