Exam 14: Consideration

Consideration is what a promisor demands and receives as the price for a promise.

The promise of a creditor to refrain from debt collection in exchange for a promise by the debtor to modify the terms of the transaction is legally sufficient consideration.

What damages are recoverable in a case of promissory estoppel?

A promise that in fact does not impose any obligation on the promisor is known as an elusive promise.

The effect of the making of a partial payment to satisfy an admitted debt is an example of the rule that:

Which of the following is not a necessary element of promissory estoppel?

In a benefit-detriment approach, consideration is a benefit received by the promisee.

Dave Tompkins was up late one night watching a television campaign for a charitable organization. The organization was seeking donations in order to construct a new building that would serve as the organization's headquarters. One of Tomkins' favorite performers appeared to promote the campaign, and this prompted Dave to telephone in a pledge. Tomkins pledged $10,000 to the charity and, feeling good about his action, finally went to sleep. The next morning, Tomkins regretted making the pledge because its enforcement would cause great personal financial hardship. Will the charity be able to legally enforce the pledge Tomkins made? If so, why might the charity choose not to enforce a lawful pledge?

Generally, a promise is legally enforceable even if nothing is given or received for the promise.

If one party's promise contains no real obligation, then the promise is merely an illusory promise and the contract will fail for lack of mutuality.

Consideration is the bargained-for exchange between the parties to a contract.

A cancellation provision cannot exist in a binding enforceable contract.

Ordinarily doing, or promising to do what one is already under a legal obligation to do, is not legal consideration.

The rule that doing or promising to do what one is already legally bound to do is not consideration applies to a part payment made in satisfaction of a(n) __________ debt.

In a contract for the sale of goods, any modification made by the parties to the contract must be supported by consideration to be binding.

John received a promotion at work and felt new clothes would be necessary in the new position. John went to a local store and charged three ties on his charge account at a cost of $60 each. Bill, a friend of John's, saw a sidewalk vendor selling ties at a cost of three for $10 and bought three at that price. The friends compared purchases that night and found that they had purchased identical ties. John became enraged and said that he would not pay the charge-account bill because the ties were clearly not worth $60 each. Bill indicated that he would testify on John's behalf if litigation ensued. What would be the probable outcome of the lawsuit?

Which of the following is not consideration for a present promise?

An agreement to pay reasonable additional compensation to a contractor for the performance of a pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:

A landowner's promise to pay a contractor a bonus to complete construction of a building according to the terms of a pre-existing contract between the landowner and the contractor is:

When there is no consideration for a promise, the agreement is: