Question 1

There are exceptions to the preexisting duty rule.

Accepted Answer

A) True 
 B)False  True

Question 2

Jake meets Bill in the parking lot outside of a bar.He grabs Bill roughly by the shoulder and demands that Bill sell Jake Bill's custom milled skis.Jake says,"You wouldn't want to get roughed up,would you?" Bill agrees to sell the skis to Jake.The contract is

Accepted Answer

A) unenforceable because Bill agreed to it under duress. 
B) unenforceable because Jake's consideration is inadequate. 
C) enforceable because Jake's consideration is legally sufficient. 
D) enforceable because Jake's consideration is adequate. 
A) unenforceable because Bill agreed to it under duress. 
B) unenforceable because Jake's consideration is inadequate. 
C) enforceable because Jake's consideration is legally sufficient. 
D) enforceable because Jake's consideration is adequate. A

Question 3

Fact Pattern 10-2 (Questions 10-12 apply)
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 10-2.If,as Brad claims,the consideration in this problem is inadequate,it may indicate a lack of

Accepted Answer

A) accord in Brad's satisfaction with the value of the deal. 
B) voluntary consent. 
C) flexibility on the part of College Credit to accommodate Brad's needs. 
D) "heft," "substance," or "weight" in the terms of the contract. 
A) accord in Brad's satisfaction with the value of the deal. 
B) voluntary consent. 
C) flexibility on the part of College Credit to accommodate Brad's needs. 
D) "heft," "substance," or "weight" in the terms of the contract. B

Question 4

An illusory promise is unenforceable.

Accepted Answer

A) True 
 B)False

Question 5

Promissory estoppel requires that justice will be better served by the enforcement of the promise.

Accepted Answer

A) True 
 B)False

Question 6

Chris promises Dina $40,000 if she graduates from Eagle College.Dina enrolls in Eagle,attends full-time for four years,and graduates.When Dina asks Chris for $40,000,Chris says,"I don't re?member promising you $40,000.But if there was a promise,it's not en?forceable,because we didn't bargain for it.And even if there was a prom?ise that would other?wise be enforceable,I revoke it now." Can Dina en?force Chris's "prom?ise"? Why or why not?

Accepted Answer

Chris's promise is binding and Dina is e

Question 7

Fact Pattern 10-4 (Questions 29-30 apply)
Dex and Carmen are in an auto accident.Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex.Carmen agrees.Later,Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 10-4.In Carmen's suit against Dex to recover her repair and medical expenses,Carmen will most likely recover

Accepted Answer

A) half the amount to pay the costs over what Dex already paid Carmen. 
B) nothing. 
C) the estimated amount to pay those costs and any other liability. 
D) the exact amount to pay those costs and no more. 
A) half the amount to pay the costs over what Dex already paid Carmen. 
B) nothing. 
C) the estimated amount to pay those costs and any other liability. 
D) the exact amount to pay those costs and no more.

Question 8

Legally sufficient consideration is something of value in the eyes of the law.

Accepted Answer

A) True 
 B)False

Question 9

It is illegal for two parties to mutually agree to rescind a valid contract.

Accepted Answer

A) True 
 B)False

Question 10

A bargained-for exchange is one of the elements of consideration.

Accepted Answer

A) True 
 B)False

Question 11

Genovese Contracting,Inc.,agrees to build a warehouse for Hawthorne Distributors.Genovese runs into the types of difficulties that contrac?tors ordinarily confront,and Hawthorne agrees to pay extra compensation to over?come them. Regarding the agreement to pay more,a court would likely

Accepted Answer

A) enforce it. 
B) rescind it. 
C) order the parties to renegotiate it. 
D) not enforce it. 
A) enforce it. 
B) rescind it. 
C) order the parties to renegotiate it. 
D) not enforce it.

Question 12

Performance that creates a legally binding contract may consist of an act.

Accepted Answer

A) True 
 B)False

Question 13

Kingston promises to pay Melina $500 to install a sump pump in his warehouse.Melina com?pletes the installation.The act of installing the pump

Accepted Answer

A) imposes a moral obligation on Kingston to pay Melina. 
B) imposes no obligation on Kingston unless he is satisfied with the job. 
C) is not sufficient consideration because it is not goods or money. 
D) is the consideration that creates Kingston's obligation to pay Melina. 
A) imposes a moral obligation on Kingston to pay Melina. 
B) imposes no obligation on Kingston unless he is satisfied with the job. 
C) is not sufficient consideration because it is not goods or money. 
D) is the consideration that creates Kingston's obligation to pay Melina.

Question 14

Windshield Repair Shop (WRS) promises to pay Vincent $1,000 a week to work for WRS.Vincent accepts and quits his job with Ultra Glass.WRS fails to provide a job for Vincent.Vincent has a cause of action based on

Accepted Answer

A) an illusory promise. 
B) a release. 
C) past consideration. 
D) promissory estoppel. 
A) an illusory promise. 
B) a release. 
C) past consideration. 
D) promissory estoppel.

Question 15

Sparky offers Teodora $1,000 for her collection of rare coins.She ac?cepts.If a dispute arises,a court would likely

Accepted Answer

A) enforce the deal after questioning the adequacy of consideration. 
B) not question the adequacy of the consideration. 
C) rewrite the deal after questioning the adequacy of consideration. 
D) set aside the deal after questioning the adequacy of consideration. 
A) enforce the deal after questioning the adequacy of consideration. 
B) not question the adequacy of the consideration. 
C) rewrite the deal after questioning the adequacy of consideration. 
D) set aside the deal after questioning the adequacy of consideration.

Question 16

Mariah promises to pay her assistant Nadine $10,000 in consideration of the ser?vices she provided over the years.Mariah never pays Nadine.Mariah is

Accepted Answer

A) liable for payment of the $10,000. 
B) liable only if Nadine still works for Mariah. 
C) not liable,because the consideration is in the past. 
D) not liable,because the consideration was unintentional. 
A) liable for payment of the $10,000. 
B) liable only if Nadine still works for Mariah. 
C) not liable,because the consideration is in the past. 
D) not liable,because the consideration was unintentional.

Question 17

An accord and satisfaction is a common means of settling a claim.

Accepted Answer

A) True 
 B)False

Question 18

Carl pledges $1,000 to the Disaster Relief Organization (DRO).On the ba?sis of the pledge,DRO orders additional rescue equipment.Carl fails to pay.In DRO's suit,a court may enforce the pledge

Accepted Answer

A) according to the preexisting duty rule. 
B) as an illusory promise supported by past consideration. 
C) on a theory of accord and satisfaction. 
D) under the doctrine of promissory estoppel. 
A) according to the preexisting duty rule. 
B) as an illusory promise supported by past consideration. 
C) on a theory of accord and satisfaction. 
D) under the doctrine of promissory estoppel.

Question 19

A covenant not to sue is against public policy.

Accepted Answer

A) True 
 B)False

Question 20

In general,courts consider the fairness of a contract when deciding if the contract is binding.

Accepted Answer

A) True 
 B)False

Exam 10: Consideration

There are exceptions to the preexisting duty rule.

Jake meets Bill in the parking lot outside of a bar.He grabs Bill roughly by the shoulder and demands that Bill sell Jake Bill's custom milled skis.Jake says,"You wouldn't want to get roughed up,would you?" Bill agrees to sell the skis to Jake.The contract is

An illusory promise is unenforceable.

Promissory estoppel requires that justice will be better served by the enforcement of the promise.

Legally sufficient consideration is something of value in the eyes of the law.

It is illegal for two parties to mutually agree to rescind a valid contract.

A bargained-for exchange is one of the elements of consideration.

Genovese Contracting,Inc.,agrees to build a warehouse for Hawthorne Distributors.Genovese runs into the types of difficulties that contrac?tors ordinarily confront,and Hawthorne agrees to pay extra compensation to over?come them. Regarding the agreement to pay more,a court would likely

Performance that creates a legally binding contract may consist of an act.

Kingston promises to pay Melina $500 to install a sump pump in his warehouse.Melina com?pletes the installation.The act of installing the pump

Windshield Repair Shop (WRS) promises to pay Vincent $1,000 a week to work for WRS.Vincent accepts and quits his job with Ultra Glass.WRS fails to provide a job for Vincent.Vincent has a cause of action based on

Sparky offers Teodora $1,000 for her collection of rare coins.She ac?cepts.If a dispute arises,a court would likely

Mariah promises to pay her assistant Nadine $10,000 in consideration of the ser?vices she provided over the years.Mariah never pays Nadine.Mariah is

An accord and satisfaction is a common means of settling a claim.

Carl pledges $1,000 to the Disaster Relief Organization (DRO).On the ba?sis of the pledge,DRO orders additional rescue equipment.Carl fails to pay.In DRO's suit,a court may enforce the pledge

A covenant not to sue is against public policy.

In general,courts consider the fairness of a contract when deciding if the contract is binding.

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