Exam 11: Consideration

Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by September 1.The contract contained a provision which required all modifications to be written and signed by the company presidents.In early August,an executive of Mid-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil; one in September and the second one in December.By September 30,when only 500 gallons had been delivered,NSB sued.The likely outcome of this lawsuit is:

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

Under the Uniform Commercial Code,an agreement modifying a contract:

"I'll sell you my car if I decide to sell it" is an example of:

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.

Consideration can be a promise or an act.

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

Output contracts in the sale of goods are expressly prohibited by Section 2-306 of the UCC.

If Annie promises not to drink alcohol until she is 21 years of age in exchange for her aunt's promise of $1,000,the agreement is:

Frank owes an undisputed amount to Hanson Gutter Cleaners.Which of the following is true?

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

Shirley Rhone suffered injuries when a truck struck the vehicle in which she was riding.State Auto Mutual Insurance Co.was the insurer involved and provided personal injury coverage.Shirley went to see Dr.Allen,a chiropractor who provided treatments 32 times over a 3-month period.Dr.Allen billed State Auto in three separate billings.After paying the first two billings in full,State Auto expressed concern about whether Dr.Allen's charges were excessive.State Auto hired Chiropractic Consultants,Inc.to evaluate Dr.Allen's billings.The consultants advised that Dr.Allen's billings were indeed excessive.State Auto then telephoned Dr.Allen and offered a partial payment to settle the account.After this conversation,State Auto issued and sent a check for $864 payable to Dr.Allen.On the face of the check,State Auto noted the total amount allocated to each claim and typed "settlement in full." On the reverse side it said,"The endorsement of this draft by the payee constitutes a clear release and full settlement of the claim or account shown on the other side." Upon receipt of the check,Dr.Allen cashed the check.He then sought payment of an additional $895.State Auto claims there was an accord and satisfaction with respect to the amount due for services rendered by Dr.Allen.What are the requirements of an accord and satisfaction? Were those requirements met in this case?

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:

Contracts in which one party agrees to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.

What two exceptions did the UCC create for accord and satisfaction check cases?

The UCC requires consideration for agreements modifying contracts for the sale of goods.

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers.Which of the following statements is true?

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

Which of the following statements describes a requirements contract?

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?