Question 1

In which of the following cases was the plaintiff successful on the basis of promissory estoppel?

Accepted Answer

A) East Van Villages v Minister Administrating the National Parks and Wildlife [2001] NSWSC 559. 
B) Giumelli v Giumelli (1999)196 CLR 101. 
C) Austotel Pty Ltd v Franklins Selfservice Pty Ltd (1989)16 NSWLR 582. 
D) None of the above. 
A) East Van Villages v Minister Administrating the National Parks and Wildlife [2001] NSWSC 559. 
B) Giumelli v Giumelli (1999)196 CLR 101. 
C) Austotel Pty Ltd v Franklins Selfservice Pty Ltd (1989)16 NSWLR 582. 
D) None of the above.

Question 2

To establish consideration,the price must be:

Accepted Answer

A) valuable,adequate and sufficient. 
B) valuable and either adequate or sufficient. 
C) valuable and adequate,but need not be sufficient. 
D) valuable and sufficient,but need not be adequate. 
A) valuable,adequate and sufficient. 
B) valuable and either adequate or sufficient. 
C) valuable and adequate,but need not be sufficient. 
D) valuable and sufficient,but need not be adequate.

Question 3

Which of the following is NOT one of the criteria which must be satisfied in order for 'past' consideration to be enforceable?

Accepted Answer

A) At the time the past consideration was provided,the parties understood that it would be remunerated. 
B) The past consideration was identified after the promisor made their promise. 
C) The promise would have been enforceable if it had been promised in advance of the past consideration. 
D) The past consideration was provided at the promisor's request. 
A) At the time the past consideration was provided,the parties understood that it would be remunerated. 
B) The past consideration was identified after the promisor made their promise. 
C) The promise would have been enforceable if it had been promised in advance of the past consideration. 
D) The past consideration was provided at the promisor's request.

Question 4

In which case did the court decide that performance of an existing contractual duty by a group of sailors was not good consideration for the captain's promise to pay extra wages?

Accepted Answer

A) Glasbrook Bros Ltd v Glamorgan County Council [1925] AC 270. 
B) Stilk v Myrick [1809] 2 Camp 317. 
C) Roscorla v Thomas [1842] 3 QB 234. 
D) Hartley v Ponsonby (1871)119 ER 1471. 
A) Glasbrook Bros Ltd v Glamorgan County Council [1925] AC 270. 
B) Stilk v Myrick [1809] 2 Camp 317. 
C) Roscorla v Thomas [1842] 3 QB 234. 
D) Hartley v Ponsonby (1871)119 ER 1471.

Question 5

The doctrine of promissory estoppel:

Accepted Answer

A) can be used to commence a civil action but not as a defence to a civil action. 
B) can be used to either commence or defend a civil action. 
C) can be used as a defence to a civil action,but not to commence a civil action. 
D) all of the above. 
A) can be used to commence a civil action but not as a defence to a civil action. 
B) can be used to either commence or defend a civil action. 
C) can be used as a defence to a civil action,but not to commence a civil action. 
D) all of the above.

Question 6

Why is consideration important in respect to contracts? In your answer compare the types of consideration supported by relevant cases.

Accepted Answer

In the case of formal contracts such as

Question 7

Which case is authority for the principle that a promise made after an act is not supported by consideration?

Accepted Answer

A) Lampleigh v Braithwait (1615)Hob 105;80 ER 255. 
B) Anderson v Glass [1869] 5 WW&A'B(L)152. 
C) Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847. 
D) Roscorla v Thomas [1842] 3 QB 234. 
A) Lampleigh v Braithwait (1615)Hob 105;80 ER 255. 
B) Anderson v Glass [1869] 5 WW&A'B(L)152. 
C) Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847. 
D) Roscorla v Thomas [1842] 3 QB 234.

Question 8

The person making the promise is considered the promisee.

Accepted Answer

A) True 
 B)False

Question 9

Consideration must have a value that is recognised by the law.

Accepted Answer

A) True 
 B)False

Question 10

A promise to accept a lesser sum in satisfaction of a greater sum will be enforceable if it is contained in a deed.

Accepted Answer

A) True 
 B)False

Question 11

In order to form a simple contract,a bargain must be present.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the best example of executed 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.

Question 13

Explain what is meant by the expression 'valuable consideration.'

Accepted Answer

The expression 'valuable consideration,'

Question 14

In which case was the issue of past consideration considered in the context of an employment contract?

Accepted Answer

A) Roscorla v Thomas [1842] 3 QB 234. 
B) Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847. 
C) Lampleigh v Braithwait (1615)Hob 105;80 ER 255. 
D) Anderson v Glass [1869] 5 WW&A'B(L)152. 
A) Roscorla v Thomas [1842] 3 QB 234. 
B) Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847. 
C) Lampleigh v Braithwait (1615)Hob 105;80 ER 255. 
D) Anderson v Glass [1869] 5 WW&A'B(L)152.

Question 15

Match between columns
                        Premises: Short-term loans from a financial institution
Rent payable
Insurance premiums payable
Current maturities of long-term debt
Utilities payable

Accepted Answer

The Answer of Current operating liability and Current non-operating liability is...

Question 16

The effect of the rules of consideration is that the law can only be used to enforce bargains,but it cannot be used to enforce promised gifts.Is this distinction between gifts and bargains a fair one?

Accepted Answer

The distinction between gifts and bargai

Question 17

Which of the following is the best example of past 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.

Question 18

The plaintiff in Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847 was unable to enforce the defendant's promise because:

Accepted Answer

A) the promise had been made to Dew & Co. 
B) there was no privity of contract between Dunlop and Selfridge. 
C) Dunlop had given Selfridge no consideration. 
D) all of the above. 
A) the promise had been made to Dew & Co. 
B) there was no privity of contract between Dunlop and Selfridge. 
C) Dunlop had given Selfridge no consideration. 
D) all of the above.

Question 19

Executed consideration is also referred to as future consideration.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would NOT amount to sufficient consideration?

Accepted Answer

A) A promise to give the creditor a book worth $100 in exchange for a full discharge from a debt of $200. 
B) A used postage stamp. 
C) A promise to give $100 to one party's daughter in exchange for a promise to provide services to the value of $300 to the other party. 
D) A promise to pay $100 in exchange for a promise to fully discharge the debtor from the obligation to pay the balance of the debt of $200 owing to the creditor. 
A) A promise to give the creditor a book worth $100 in exchange for a full discharge from a debt of $200. 
B) A used postage stamp. 
C) A promise to give $100 to one party's daughter in exchange for a promise to provide services to the value of $300 to the other party. 
D) A promise to pay $100 in exchange for a promise to fully discharge the debtor from the obligation to pay the balance of the debt of $200 owing to the creditor.

Exam 9: Consideration

In which of the following cases was the plaintiff successful on the basis of promissory estoppel?

To establish consideration,the price must be:

Which of the following is NOT one of the criteria which must be satisfied in order for 'past' consideration to be enforceable?

In which case did the court decide that performance of an existing contractual duty by a group of sailors was not good consideration for the captain's promise to pay extra wages?

The doctrine of promissory estoppel:

Why is consideration important in respect to contracts? In your answer compare the types of consideration supported by relevant cases.

Which case is authority for the principle that a promise made after an act is not supported by consideration?

The person making the promise is considered the promisee.

Consideration must have a value that is recognised by the law.

A promise to accept a lesser sum in satisfaction of a greater sum will be enforceable if it is contained in a deed.

In order to form a simple contract,a bargain must be present.

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

Explain what is meant by the expression 'valuable consideration.'

In which case was the issue of past consideration considered in the context of an employment contract?

The effect of the rules of consideration is that the law can only be used to enforce bargains,but it cannot be used to enforce promised gifts.Is this distinction between gifts and bargains a fair one?

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

The plaintiff in Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847 was unable to enforce the defendant's promise because:

Executed consideration is also referred to as future consideration.

Which of the following would NOT amount to sufficient consideration?

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