Question 1

Which of the following is the best example of executory consideration?

Accepted Answer

A) A pays B $10.00 today in return for B giving A a book today. 
B) A promises to pay B $10.00 tomorrow in return for B giving A a book tomorrow. 
C) A promises to pay B $10.00 tomorrow in return for B giving A a book yesterday. 
D) All of the above. 
A) A pays B $10.00 today in return for B giving A a book today. 
B) A promises to pay B $10.00 tomorrow in return for B giving A a book tomorrow. 
C) A promises to pay B $10.00 tomorrow in return for B giving A a book yesterday. 
D) All of the above. B

Question 2

Consideration must be present or future,it cannot be past.

Accepted Answer

A) True 
 B)False  True

Question 3

In the context of contract law,'consideration' is defined as:

Accepted Answer

A) the act of considering the terms of a contract before agreeing to them. 
B) the monetary value of the contract. 
C) a sum paid by one party for the other party's offer. 
D) the price paid by each party for the other party's promise or performance. 
A) the act of considering the terms of a contract before agreeing to them. 
B) the monetary value of the contract. 
C) a sum paid by one party for the other party's offer. 
D) the price paid by each party for the other party's promise or performance. D

Question 4

Estoppel is based on an assumption of fact or law.

Accepted Answer

A) True 
 B)False

Question 5

The rule in Foakes v Beer will apply in which of the following scenarios?

Accepted Answer

A) Where the creditor has requested that the debtor pay the lesser amount by cheque instead of cash. 
B) Where the creditor has requested that the debtor pay the lesser amount at a different place. 
C) Where the creditor has requested that the debtor accompany payment of the lesser amount with some other act they were not originally bound to perform. 
D) Where the creditor has requested that the debtor pay the lesser amount on an earlier date. 
A) Where the creditor has requested that the debtor pay the lesser amount by cheque instead of cash. 
B) Where the creditor has requested that the debtor pay the lesser amount at a different place. 
C) Where the creditor has requested that the debtor accompany payment of the lesser amount with some other act they were not originally bound to perform. 
D) Where the creditor has requested that the debtor pay the lesser amount on an earlier date.

Question 6

Estoppel can only be used as a defence.

Accepted Answer

A) True 
 B)False

Question 7

The decision in Waltons Stores (Interstate)Ltd v Maher (1998)164 CLR 387 is significant because:

Accepted Answer

A) promissory estoppel was applied where there was no pre-existing contract. 
B) promissory estoppel was used to commence an action. 
C) promissory estoppel was applied in Australia. 
D) all of the above. 
A) promissory estoppel was applied where there was no pre-existing contract. 
B) promissory estoppel was used to commence an action. 
C) promissory estoppel was applied in Australia. 
D) all of the above.

Question 8

When the doctrine of promissory estoppel is applied,it results in the suspension of the promisor's legal rights.

Accepted Answer

A) True 
 B)False

Question 9

Valid consideration is NOT established by which of the following?

Accepted Answer

A) The consideration must be definite. 
B) The consideration must be gratuitous. 
C) The consideration must be possible. 
D) The consideration must be present or future but not past. 
A) The consideration must be definite. 
B) The consideration must be gratuitous. 
C) The consideration must be possible. 
D) The consideration must be present or future but not past.

Question 10

The case of Foakes v Beer (1884)9 App Cas 605 is authority for the principle that payment of a lesser amount than that already owed:

Accepted Answer

A) discharges the debt if accepted by the payee. 
B) is an act detrimental to the payer and therefore good consideration. 
C) is not sufficient consideration for the payee's promise to discharge the debt. 
D) can be revoked at any time by the payer. 
A) discharges the debt if accepted by the payee. 
B) is an act detrimental to the payer and therefore good consideration. 
C) is not sufficient consideration for the payee's promise to discharge the debt. 
D) can be revoked at any time by the payer.

Question 11

Only a promise supported by consideration will be enforced by a court.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT one of the reasons for the decision in Lampleigh v Braithwait (1615)Hob 105;80 ER 255?

Accepted Answer

A) The request and promise to pay were treated as a normal business transaction. 
B) There was an implied promise to pay at the time of the request. 
C) The request and the promise to pay were treated as part of the same transaction. 
D) The services were performed at Braithwait's request. 
A) The request and promise to pay were treated as a normal business transaction. 
B) There was an implied promise to pay at the time of the request. 
C) The request and the promise to pay were treated as part of the same transaction. 
D) The services were performed at Braithwait's request.

Question 13

To what extent has the doctrine of promissory estoppel made the requirement that all simple contracts be supported by consideration irrelevant?

Accepted Answer

The doctrine of promissory estoppel has

Question 14

The consideration paid by a party to a contract can be:

Accepted Answer

A) forbearance. 
B) a promise. 
C) an act. 
D) any of the above. 
A) forbearance. 
B) a promise. 
C) an act. 
D) any of the above.

Question 15

Which of the following is NOT an element of promissory estoppel?

Accepted Answer

A) The defendant is responsible for creating the assumption. 
B) An assumption in the mind of the plaintiff. 
C) The defendant's statements were vague and ambiguous. 
D) The plaintiff relied upon the assumption to his detriment. 
A) The defendant is responsible for creating the assumption. 
B) An assumption in the mind of the plaintiff. 
C) The defendant's statements were vague and ambiguous. 
D) The plaintiff relied upon the assumption to his detriment.

Question 16

Estoppel was rejected Easts Van Villages v Minister Administering the National Parks and Wildlife [2001] NSWSC 559 because:

Accepted Answer

A) The plaintiff had not suffered any detriment. 
B) The defendant's statement was not unambiguous. 
C) Estoppel was not rejected. 
D) The parties had equal bargaining power. 
A) The plaintiff had not suffered any detriment. 
B) The defendant's statement was not unambiguous. 
C) Estoppel was not rejected. 
D) The parties had equal bargaining power.

Question 17

The claim for higher wages was successful in Hartley v Ponsonby (1871)119 ER 1471 because:

Accepted Answer

A) there was a commercial benefit to the defendant. 
B) performance went beyond what was originally promised. 
C) the promisor derived an additional benefit. 
D) completion as originally promised saved the defendant additional cost. 
A) there was a commercial benefit to the defendant. 
B) performance went beyond what was originally promised. 
C) the promisor derived an additional benefit. 
D) completion as originally promised saved the defendant additional cost.

Question 18

The rule in Foakes v Beer was not applied in Hirachand Punamchand v Temple [1911] 2 KB 330 because:

Accepted Answer

A) the payment was accepted by the creditor. 
B) the debt was paid by a third party. 
C) the debt was paid with interest. 
D) the debt was paid in full. 
A) the payment was accepted by the creditor. 
B) the debt was paid by a third party. 
C) the debt was paid with interest. 
D) the debt was paid in full.

Question 19

All simple contracts require consideration to be present.

Accepted Answer

A) True 
 B)False

Question 20

In which case did the court decide that,while performance of an existing legal duty by police officers was not good consideration for a mine owner's promise to pay,performance beyond what they were legally required to do was good consideration?

Accepted Answer

A) Anderson v Glass [1869] 5 WW&AB(L)152. 
B) Glasbrook Bros Ltd v Glamorgan County Council [1925] AC 270. 
C) Stilk v Myrick [1809] 2 Camp 317. 
D) Hartley v Ponsonby (1871)119 ER 1471. 
A) Anderson v Glass [1869] 5 WW&AB(L)152. 
B) Glasbrook Bros Ltd v Glamorgan County Council [1925] AC 270. 
C) Stilk v Myrick [1809] 2 Camp 317. 
D) Hartley v Ponsonby (1871)119 ER 1471.

Exam 9: Consideration

Which of the following is the best example of executory consideration?

Consideration must be present or future,it cannot be past.

In the context of contract law,'consideration' is defined as:

Estoppel is based on an assumption of fact or law.

The rule in Foakes v Beer will apply in which of the following scenarios?

Estoppel can only be used as a defence.

The decision in Waltons Stores (Interstate)Ltd v Maher (1998)164 CLR 387 is significant because:

When the doctrine of promissory estoppel is applied,it results in the suspension of the promisor's legal rights.

Valid consideration is NOT established by which of the following?

The case of Foakes v Beer (1884)9 App Cas 605 is authority for the principle that payment of a lesser amount than that already owed:

Only a promise supported by consideration will be enforced by a court.

Which of the following is NOT one of the reasons for the decision in Lampleigh v Braithwait (1615)Hob 105;80 ER 255?

To what extent has the doctrine of promissory estoppel made the requirement that all simple contracts be supported by consideration irrelevant?

The consideration paid by a party to a contract can be:

Which of the following is NOT an element of promissory estoppel?

Estoppel was rejected Easts Van Villages v Minister Administering the National Parks and Wildlife [2001] NSWSC 559 because:

The claim for higher wages was successful in Hartley v Ponsonby (1871)119 ER 1471 because:

The rule in Foakes v Beer was not applied in Hirachand Punamchand v Temple [1911] 2 KB 330 because:

All simple contracts require consideration to be present.

In which case did the court decide that,while performance of an existing legal duty by police officers was not good consideration for a mine owner's promise to pay,performance beyond what they were legally required to do was good consideration?

Legal Foundations

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How Law Is Made: Precedentstatute Law

Civil Liability: the Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Capacity of the Parties

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties,discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Introduction to Companies and Incorporated Associations

Agency

Partnerships

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goodsbusiness to Business

Property and Mortgages

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