Question 1

Consideration distinguishes mere agreements from legally enforceable obligations. ​

Accepted Answer

A) True 
 B)False  True

Question 2

A promise to steal a valuable piece of art is valid consideration to support a contract.

Accepted Answer

A) True 
 B)False  False

Question 3

As a general rule, the adequacy of the consideration is irrelevant because the law allows bargains.

Accepted Answer

A) True 
 B)False  True

Question 4

As a general rule, a promise must be supported by consideration. Describe any two exceptions to this rule. ​

Accepted Answer

Two exceptions to the requirement of con

Question 5

Blake has subscribed to a local charitable association where he needs to make a monthly payment of $100. However, a few months later, Blake stops paying this amount. Which of the following exceptions to the requirement of consideration will enforce that Blake pays the amount?

Accepted Answer

A) Composition of creditors 
B) Voluntary subscriptions 
C) Forbearance to cancel monthly subscriptions 
D) Modification of sales contracts 
A) Composition of creditors 
B) Voluntary subscriptions 
C) Forbearance to cancel monthly subscriptions 
D) Modification of sales contracts

Question 6

As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule?

Accepted Answer

A) A non-charitable enterprise financed by the subscriptions of individuals 
B) A promise to refrain from doing what one has no right to do 
C) An act performed prior to the promise made by the promisor 
D) An obligation of record such as a judgment 
A) A non-charitable enterprise financed by the subscriptions of individuals 
B) A promise to refrain from doing what one has no right to do 
C) An act performed prior to the promise made by the promisor 
D) An obligation of record such as a judgment

Question 7

Consideration is not necessary to support an obligation of record.

Accepted Answer

A) True 
 B)False

Question 8

Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt.

Accepted Answer

A) True 
 B)False

Question 9

When one refrains or promises to refrain from doing something, this conduct is known as .

Accepted Answer

A) duress 
B) forbearance 
C) negligence 
D) disaffirmation 
A) duress 
B) forbearance 
C) negligence 
D) disaffirmation

Question 10

Which of the following constitutes valid consideration?

Accepted Answer

A) A promise to refrain from doing an illegal act 
B) Past performance 
C) A promise to refrain from doing an act that can be lawfully done 
D) A promise to do what one is already obligated to do 
A) A promise to refrain from doing an illegal act 
B) Past performance 
C) A promise to refrain from doing an act that can be lawfully done 
D) A promise to do what one is already obligated to do

Question 11

When charitable enterprises are financed by voluntary subscriptions of many people, the promise of each person is generally not held to be enforceable.

Accepted Answer

A) True 
 B)False

Question 12

When parties to a contract mutually agree to cancel an old contract and replace it with a new one, which of the following is true?

Accepted Answer

A) To be enforceable, there must be added features in the new contract benefiting both parties. 
B) One party's past performance under the original contract is sufficient consideration for the new contract. 
C) The new contract is void. 
D) Neither party has a right to make changes to the original contract. 
A) To be enforceable, there must be added features in the new contract benefiting both parties. 
B) One party's past performance under the original contract is sufficient consideration for the new contract. 
C) The new contract is void. 
D) Neither party has a right to make changes to the original contract.

Question 13

If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true of the doctrine of promissory estoppel? ​

Accepted Answer

A) It requires that promises made should be supported by consideration. 
B) It permits the promisor to claim lack of consideration when the promisee acts in reliance on his promise. 
C) It requires the promisor to reasonably expect the promise to induce action by the promisee. 
D) It holds enforcement to be proper if the promisee would not be harmed if the promise were not enforced. 
A) It requires that promises made should be supported by consideration. 
B) It permits the promisor to claim lack of consideration when the promisee acts in reliance on his promise. 
C) It requires the promisor to reasonably expect the promise to induce action by the promisee. 
D) It holds enforcement to be proper if the promisee would not be harmed if the promise were not enforced.

Question 15

For a promise to constitute consideration, the promise must not impose an obligation on the person making it.

Accepted Answer

A) True 
 B)False

Question 16

Only financial items can constitute consideration.

Accepted Answer

A) True 
 B)False

Question 17

Mark owes $2000 each to his business partners, Ryan, Bryan, and Clark. Since Mark is facing financial difficulties, his business partners agree to accept a total amount of $4800 from Mark as a cancellation of the unpaid balance due to them. This type of an agreement is known as a .

Accepted Answer

A) composition of creditors 
B) writ of certiorari 
C) forbearance 
D) promissory estoppel 
A) composition of creditors 
B) writ of certiorari 
C) forbearance 
D) promissory estoppel

Question 18

The Uniform Commercial Code states that when a contract for the sale of goods is modified by agreement of the parties, consideration is necessary to make it enforceable.

Accepted Answer

A) True 
 B)False

Question 19

Performing or promising to perform what one is already obligated to do is a valid consideration.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following best describes the term "consideration"? ​

Accepted Answer

A) It refers to the record of a case sent for review to a higher court. 
B) It indicates what the promisor demands and receives as the price for a promise. 
C) It signifies a promissory note given by the promisor as a token of the transaction. 
D) It refers to the promisor refraining from meeting a promise. 
A) It refers to the record of a case sent for review to a higher court. 
B) It indicates what the promisor demands and receives as the price for a promise. 
C) It signifies a promissory note given by the promisor as a token of the transaction. 
D) It refers to the promisor refraining from meeting a promise.

Exam 8: Consideration

Consideration distinguishes mere agreements from legally enforceable obligations. ​

A promise to steal a valuable piece of art is valid consideration to support a contract.

As a general rule, the adequacy of the consideration is irrelevant because the law allows bargains.

As a general rule, a promise must be supported by consideration. Describe any two exceptions to this rule. ​

Blake has subscribed to a local charitable association where he needs to make a monthly payment of $100. However, a few months later, Blake stops paying this amount. Which of the following exceptions to the requirement of consideration will enforce that Blake pays the amount?

As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule?

Consideration is not necessary to support an obligation of record.

Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt.

When one refrains or promises to refrain from doing something, this conduct is known as .

Which of the following constitutes valid consideration?

When charitable enterprises are financed by voluntary subscriptions of many people, the promise of each person is generally not held to be enforceable.

When parties to a contract mutually agree to cancel an old contract and replace it with a new one, which of the following is true?

If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid.

Which of the following is true of the doctrine of promissory estoppel? ​

For a promise to constitute consideration, the promise must not impose an obligation on the person making it.

Only financial items can constitute consideration.

Mark owes $2000 each to his business partners, Ryan, Bryan, and Clark. Since Mark is facing financial difficulties, his business partners agree to accept a total amount of $4800 from Mark as a cancellation of the unpaid balance due to them. This type of an agreement is known as a .

The Uniform Commercial Code states that when a contract for the sale of goods is modified by agreement of the parties, consideration is necessary to make it enforceable.

Performing or promising to perform what one is already obligated to do is a valid consideration.

Which of the following best describes the term "consideration"? ​

Introduction to Law

Courts and Court Procedures

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corporation

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills Inheritances and Trust

Filters

Consideration distinguishes mere agreements from legally enforceable obligations.

As a general rule, a promise must be supported by consideration. Describe any two exceptions to this rule.

Which of the following is true of the doctrine of promissory estoppel?

Which of the following best describes the term "consideration"?