Exam 12: Consideration

Jack moved from New Hampshire to Florida and decided to have an air conditioner installed in his car. After it was installed, Jack received a bill for $1,200. Jack called the dealer and told him he'd never heard of this service costing more than $500. They argued, but the dealer finally agreed to take $900. Is the agreement enforceable?

The UCC provides that a contract for the sale of goods cannot be effectively modified without new consideration.

In a unilateral contract, a promise is exchanged from one party to another for a promise to forbear to act.

Darren owes Carl a past-due undisputed debt of $600. Darren sees Carl in a restaurant and pays him $500. Carl then says to Darren , "Forget about the other $100 you owe me. I'm glad to get the $500." Carl 's promise to discharge the remainder of the debt is binding.

An agreement to sell the entire production of a particular plant is a requirements contract.

The parties to a contract may modify the agreement with no additional consideration by simply substituting a new contract.

Which of the following would not be enforceable without additional consideration?

Which of the following statements best describes charitable subscription promises?

In a contract for the sale of lawn care services, an issue arises about whether the homeowner would receive disproportionately less in service than the lawn care company would receive in compensation. This disparity may be relevant to the:

Ken, a research chemist, has been promised a fellowship with a stipend of $20,000 to do research on synthetic fuel oil. Under the terms of the fellowship, Ken is free to use the money as he sees fit. Ken decides to build his own laboratory, so he will not have to rent one. He hires a carpenter who begins working on shelving and cabinets in the laboratory. Then Ken receives a telegram saying the fellowship has been canceled. No reason is given for the cancellation. If Ken sues, will he be able to collect the money from the foundation which promised the fellowship? Explain your answer using legal terminology.

In DiLorenzo v. Valve & Primer Corporation , the court held:

Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms.

Nancy, who lives in Birdville, wants to open a McHenry Roast Chicken franchise. Mark, a representative of McHenry, told Nancy, "If you will buy a lot and build a building in River City, we will give you a franchise." Nancy bought the lot and built the building as instructed only to discover that McHenry had awarded the franchise to a large corporation. McHenry claims no liability to Nancy since there was no consideration. Which statement best describes the situation?

A debt is disputed only if both the existence and amount are contested.

Promises to perform prior unenforceable obligations  are enforceable even though they are not supported by consideration.

Define consideration.

Sam owes $5,000 to the First National Bank for a student loan which will come due on January 1 next year. He has been offered a two-year graduate fellowship, but he will not be able to pay the loan back if he accepts the fellowship. The bank manager tells Sam that if he pays $3,000 now, they will forgive the loan. Should Sam accept the offer?

In some states, a contract under seal is binding without consideration.

Nathan entered a contract while he was seventeen. If, upon reaching the age of majority, he has not avoided the contract and promises to perform those contractual obligations, new consideration is required for the contract to be enforceable.

Which of the following are the two basic elements to consideration?