Exam 13: Consideration

Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse. Dex com?pletes the installation. The act of installing the pump

There can be no satisfaction unless there is first an accord.

Henry promises not to open his Hank's Lunchbox Café before 10:00A.m. if Isis, who owns Isis's Danish & Donuts next door, promises to close by 4:00 p.m. Henry's consideration is

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

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.

Risks ordinarily assumed in business constitute consideration for the modification of a contract.

Gustaf and Hilltop Country Club disagree as to the exact amount Hilltop owes Gustaf for his landscaping work. They form a new agreement that, on fulfillment, will discharge the prior obli?gation. This is

For accord and satisfaction to occur, the amount of the debt cannot be in dispute.

Readymade Credit Company loans Start-Up Enterprise, Inc., $150,000 to invest in new equipment. If Start-Up fails to pay the loan within a specified period, Readymade's recovery of the debt will be barred by

A release bars any further recovery beyond the terms stated in the release.

If a promise is made, it can be enforced.

Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties.

In May, Zach agrees to work for Affordable Plumbing Supplies Company at $800 per week for a year beginning June 1. The following January, Budget Pipes & Fittings, Inc., offers Zach the same work at $900 per week. Zach tells Affordable Plumbing about the offer. Affordable Plumbing offers to enter into a new contract with Zach at $875 per week. If Zach agrees, is the new Affordable Plumbing contract enforce?able? Why or why not?

Chris promises Doreen $40,000 if she graduates from Eagle College. Doreen enrolls in Eagle, attends full-time for four years, and graduates. When Doreen 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 Doreen en?force Chris's "prom?ise"? Why or why not?

For the doctrine of promissory estoppel to be applied, there must be a clear and definite promise.

Produce Packaging Company promises its employees a 10 percent raise at the end of the year if productivity has increased and management feels the raise is warranted. Produce Packaging must

Even if the terms of a contract express such certainty of performance that the promisor has not definitely promised to do anything, the promise binds the promisor.

Essentially, adequacy of consideration concerns the fairness of the bargain.

Rudy files a suit against Shakes & Shingles, Roofing Contractor, Inc., under the doctrine of prom?issory estoppel. Rudy must show that

Fact Pattern 13-B1 (Questions B9-B10 apply) Quik Downtown Delivery contracts with Rico's Tacos to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract. -Refer to Fact Pattern 13-B1. The next day, Quik again offers to deliver Rico's products. Rico's is willing to deal, but for a new price. Quik and Rico's