Exam 11: Consideration

The Plaza Hotel contracts with EZ Lawn to have EZ mow the grass on the Plaza grounds for the next 10 years.However,there is a clause in the contract that states if the hotel chooses,the contract may be terminated provided Plaza pays EZ $2,000 on termination.Which of the following is correct?

Boris sky dives out of a plane and gets hung up in a tree,hopelessly suspended and swinging precariously in his parachute from the branches of the tree.Natasha sees that he is in trouble and comes to his rescue.Once Boris is safely on the ground,he gratefully promises to give Natasha half of his life savings.When he changes his mind,Natasha will probably be unsuccessful in enforcing his promise.

The Kelsoe v.International Wood Products,Inc.case was an example of:

An illusory promise is valid consideration.

In the historic case of Hamer v.Sidway,the nephew:

Marco agrees to sell Clowns R Us some balloons.The contract states that Clowns may buy as many balloons as it wishes.This agreement is:

Denton agreed to build a cedar deck for the Thrashers for $7,000.After he began the work,the Thrashers asked him to add cedar flower boxes at one side.Denton replied he would,but it would cost an additional $600.The Thrashers would not be obligated to pay the additional sum because the original agreement already obligated Denton to complete the deck for $7,000.

An agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as:

If Crosby and Dash are in disagreement as to the exact amount of money that Crosby owes Dash,then they may choose to form a new agreement at a set amount.If they both perform the new agreement,their conduct would be an example of:

Agreeing not to open a competing business could be consideration.

An agreement to pay a lesser amount to settle an unliquidated debt is:

Section 2-306 of the UCC expressly disallows output contracts in the sale of goods.

What phrase explains how a requirements contract can be valid?

An unliquidated debt can be described as:

Jamie is building a house on her lot.She invites Earnie of Earnie's Excavation to bid on the excavation job.Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky.Based on the assumption that the soil in Jamie's lot will be similar,he and Jamie agree that the excavation will cost $3,000.When Earnie starts digging,he learns there is solid rock under Jamie's lot.Earnie says it will cost an extra $2,500 for the excavation work.Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000.If Earnie sues,the most likely result would be:

Pastor Tom was employed by the First Church for 40 years.On Pastor Tom's retirement there was no adequate pension plan.Two months after the retirement,a wealthy parishioner,in consideration for Pastor Tom's 40 years of faithful service and for being such a "sweet" man,promised to pay him $500 per month for the rest of his life.This promise probably is not enforceable.

Walter worked nights as a clerk in a fast-food store.On his last work shift,Walter's boss told him,"I'm really grateful for the year that you have worked here.I am going to give you a bonus of $1,000 in your last paycheck." When Walter got his last paycheck,there was no bonus.If Walter sues,the likely result will be:

A promise by Derkin Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an:

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000,the agreement is:

Hilda owes Lex $3,000,which is an undisputed amount.If she offers him her car in full settlement of the debt and he accepts,the agreement is binding and he can no longer claim she owes him anything on the original debt.