Exam 9: Consideration,capacity,and Legality

Intoxicated,Clio agrees to sell her restaurant,Diners Café,to Evan for half of its real market value.This deal is most likely void if

U-Can-Own-It Corporation sells appliances to less educated consumers,including Vi,on installment plans.U-Can-Own-It files a suit against Vi when she stops making payments.Vi claims that the deal is unconscionable.The court will most likely consider

Boz runs an illegal gambling business and pays Colin,a police officer,not to interfere.The payments are discovered.Boz and Colin are sent to prison.With respect to the amount of the payments,Boz can recover

A minor's right to disaffirm a contract terminates sixty days after the contract's date.

Todos Ltd.agrees to supply United Steel,Inc. ,with minerals from Venezuela.When the government is unexpectedly overthrown in a revolution,Todos can obtain the goods only at a much higher price.United agrees to pay but later files a suit to recover the difference.The court will most likely rule that

Adhesion contracts are often held to be contrary to public policy.

Jock and Kim decide to wager in violation of a state statute on the outcome of a football game.They each deposit money with Iverson,who agrees to pay the winner of the bet.Before the game begins,Kim tells Iverson that she changed her mind about the bet.Kim can recover

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

Fact Pattern 9-3 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 9-3.In Carmen's suit against Dex to recover her repair and medical expenses,Carmen will most likely recover

A person who enters into a contract when he or she is intoxicated can void the contract if the terms are obviously favorable to the other party.

Cherry and Basil are minors who marry each other.Their minority status may be terminated under the laws of

To be legally sufficient,consideration must include something of economic value.

A promise to pay for an act that has already occurred is enforceable because the event is certain.

A covenant not to sue is the substitution of a contractual obligation for a legal action.

Jon agrees to sell his K9 Sports Equipment store to Lacy.As part of the sale,Jon promises never to open a similar,competing store anywhere.Jon's promise is most likely

Quality Steel Corporation files a suit against Rite Tool Company,claiming that the consideration for their contract is inadequate.The court will most likely not examine the adequacy of the consideration if

Fact Pattern 9-3 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 9-3.The agreement between Dex and Carmen is

In contract law,"consideration" refers to the time that a party takes to evaluate a deal.

In contract law,"consideration" refers to the courtesy that one party shows another in negotiating a deal.

A minor may disaffirm a contract only after attaining the age of majority.