Exam 9: Consideration and Cyber-Payments

Tim's mother was concerned that Tim would develop cancer if he used tobacco, so she promised Tim $10,000 if he would refrain from any use of tobacco until age 30. Tim did so, but his mother refused to give him the $10,000. Does Tim have a legal right to the $10,000? Explain.

In an enforceable agreement, a promise itself is adequate consideration when it represents something of value.

A police officer solves a crime assigned to her by her police supervisor. She may collect the reward offered by the crime victim.

Alan promises to pay a debt that was discharged in bankruptcy. This promise requires new consideration under state laws in most cases.

The issue in the Classic Case, Hamer v. Sidway, involved the question of legal detriment.

Danny agrees not to go duck hunting if "Save the Ducks" pays him $100. This is forbearance on Danny's part.

A(n) ____________ is a promise to do something that one is already obligated to do by law or some other agreement that cannot be made consideration for a new contract.

Oralia agrees to babysit Avery's daughter "when I can" if Avery promises to clean Oralia's house every week. This agreement is ____________ because it is based on a(n) ____________.

Matrix, Inc. is considering opening a restaurant in Smallville and has located a prime vacant land location that is for sale. Matrix wants to do some market research and obtain financing for construction before purchasing the land, but is concerned that a competitor, Zion, Inc., will purchase the land if Matrix does not act immediately. What legal steps should Matrix take, short of purchasing the land now, to prevent Zion from acting before them? Explain.

The legal term used to describe the sacrifice that each party must experience is that party's bargained-for-exchange.

Consideration does not require that the benefits and sacrifices promised between the parties be legal.

In terms of disputed amounts, satisfaction is the:

The law will not enforce an agreement that has not been bargained for.

A written promise not to sue is commonly called a:

The UCC has eliminated the use of the seal in all sale-of-goods contracts.

Tasha phones Robert and asks if she can borrow his vacuum cleaner to clean her apartment before her parents visit. Robert agrees to this. But when Tasha goes to pick up the vacuum, Robert refuses to give it to her. Which of the following statements is true?

Jackie borrowed $1,000 from Uncle John in 1975, with repayment due in 1977. Jackie never repays the loan, and Uncle John never attempts to collect it. In 2004, Jackie writes Uncle John a letter stating that she is sorry that she did not repay the debt and encloses a check for $100 toward repayment. Uncle John cashes the check. He dies of a heart attack one week later. Uncle John's heirs find the letter and sue Jackie to collect the remaining $900 balance. Analyze the case.

Ever since industrial capitalism became the primary economic engine of the West, courts no longer looked to see if the things exchanged in a contract were of equal value.

Sally's grandmother, Laura, promised in her will to make Sally an heir to her home if she would move into Laura's home and care for her. Sally agreed to this and moved into Laura's home. But when Laura died, her will named Bob, a family friend, as heir to her home. Is Sally legally entitled to the home?

State laws known as ____________ limit the time within which a party is allowed to bring suit to collect a debt.