Exam 10: 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 considera?tion if

Henry promises not to open his restaurant before 10:00 A.m. if Suzy, who owns a bakery next door to him, promises to close her bakery by 4:00 p.m. Henry's consideration is

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. Sally and Tasty

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

Fact Pattern 10-2 Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay. -Refer to Fact Pattern 10-2. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agree?ment is

Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration.

A debtor who promises to pay a previous debt even though recovery is barred by a statute of limitations makes an enforceable promise.

Consideration is the value given in return for a promise.

Claudia pledges to donate $10,000 to Disaster Relief & Recovery Inc. (DR&R). On the basis of the pledge, DR&R orders additional supplies. If Claudia does not fulfill the pledge, a court may enforce it

Mobile Media Company contracts to hire Nada for one year at $35 per hour, reserving the right to cancel the contract at any time after Nada begins performance by giving two weeks' notice. This promise is

An illusory promise is an enforceable promise.

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