Exam 10: Consideration

For consideration to have "legally sufficient value," it must con?sist of goods or money.

Aron 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

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

After an accident with a driver for Onyx Security Company, Paul signs a covenant not to sue Onyx for damages in a tort action if it pays for the damage to his car. This covenant

Fact Pattern 10-3 Sally contracts with Tasty Pizza Company 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 10-3. The next day, Sally changes her mind and again offers to deliver Tasty's products. Tasty is willing to deal, but for a new price. Sally and Tasty

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

In many states, a release contract must be in a signed writing.

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

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

Industrial Engineering, Inc., promises to give stock options to Jasmine for processes she has already designed for the firm. This promise is enforceable

Frisco offers to buy a Gibson guitar owned by Hayden for twice what she paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is

Past consideration can be legally sufficient consideration.

A preexisting duty may arise from a previous contract.

Qiana writes a check to Payday Loans, Inc., in an amount that represents half of her debt to the lender. On the back of the check, Qiana includes the words "payment in full." Payday agrees to accept the lesser sum and cashes the check. This dis?charges the entire debt

A transaction that lacks a bargained-for exchange lacks an element of consideration.

Fact Pattern 10-1 Bridey defends against a suit for breach of contract by Continental Mortgage Company by claiming that their deal-a mortgage loan secured by Bridey's purchase of a house-was unfair because the consideration for their contract was inadequate. -Refer to Fact Pattern 10-1. "Adequacy" of consideration refers to

Quentin questions whether there is consideration for his contract with Rainey to exchange his performance with the Symphonic Saxophone Sextet for her payment of a certain amount. To constitute consideration, there must be

A promise made in return for an act or event that has yet taken place is unenforceable.

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

Dave's uncle tells Dave that if "he feels that Dave deserves it," he will give Dave $1,000 when Dave graduates from college. Dave's uncle's promise is