Exam 13: Consideration

After an accident with a vehicle licensed to Guardian Security Company,Heidi signs a covenant not to sue Guardian Security for damages in a tort action if it pays for the damage to her car.This covenant is

Statutes of limitations in all states require a debtor to pay a debt within a specified period of time.

Aaron questions whether there is consideration for his contract with Banquet Hall to exchange his musical performance of country tunes at select social events for Banquet's payment of a certain amount.To constitute consideration,the value of whatever is exchanged must be

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

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

To be legally sufficient,consideration must be evidenced by something tangible.

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

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 enforceable Why or why not

A court is not likely to allow an exception to the preexisting duty rule even if extraordinary difficulties arise that were totally unforeseen at the time a contract was formed.

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

Valley Paragliders Association files a suit against Wing Designers,Inc.,claiming that the consideration for their contract is inadequate.The court will most likely not examine the adequacy of the consideration if

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

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.Quik and Rico's

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

Apples & Pears Orchards contracts to hire Brigit for one year to tend the fruit in its commercial orchards but reserves the right to cancel the employment on thirty days' notice at any time after Brigit begins work.This promise is

A covenant not to sue does not always bar further recovery.

A determination of whether consideration exists depends on a comparison of the values of the things exchanged.

While sailboarding,Jolene is injured when Kilroy carelessly crosses her path.Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability,and she accepts.Later,she learns that her injuries are more serious than she realized.The release is

Esmeralda promises to pay Fiorello $400 because "he does not have as much money as other people." Esmeralda's promise is not enforceable because