Exam 12: A: Consideration

In May,Rolf agrees to work for Soda Sales Company at $800 per week for a year beginning June 1.The following January,Tropic Beverages,Inc. ,offers Rolf the same work at $900 per week.Rolf tells Soda about the offer.Soda offers to enter into a new contract with Rolf at $875 per week.If Rolf agrees,is the new Soda contract enforce?able? Why or why not?

Suki works for Renaldo.At the end of her first year,Renaldo promises to pay her a bonus for her "four quarters of success." Renaldo's promise is

Chip's Chips Company agrees to supply Delicioso Café with all the corn chips that it re?quires for a year.A sudden demand for ethanol results in a shortage of corn,and the price rises sharply.Chip's asks Delicioso to pay a higher price for the chips.This request is

Fact Pattern 12-B1 Sal 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 12-B1.The next day,Sal changes her mind and again offers to deliver Tasty's products.Tasty is willing to deal,but for a new price.Sal and Tasty

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

Metal Fabrication Corporation promises to give stock options to Sigourney for processes she has already designed for the firm.This promise is

In many states,a release requires a signed writing.

A promise to pay a debt for which a statute of limitations bars recovery is an unenforceable promise.

Inadequate consideration may reflect a lack of bargained-for exchange.

Fact Pattern 12-B1 Sal 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 12-B1.Sal and Tasty

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

Sonic Board Corporation files a suit against Custom Fabricators Company,claiming that the consideration for their contract is inadequate.The court will most likely not examine the adequacy of the considera?tion if

Braxton questions whether there is consideration for his contract with Tawny to exchange his accounting services for her payment of a certain amount.To constitute consideration,there must be

Extraordinary difficulties that were unforeseen at the time a contract was formed do not justify a demand for additional compensation.

An accord and satisfaction is used to discharge an unliquidated debt.

Cato promises Isabella $40,000 if she graduates from State College.Isabella enrolls in State,attends full-time for four years,and graduates.When she asks Cato for $40,000,he 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 otherwise be enforceable,I revoke it now." Can Isabella en?force Cato's "prom?ise"? Why or why not?

In a skateboarding accident with Ryan,Starla is injured.Ryan's insurance company's offers her $25,000 to release him from liability,and she accepts.Later,she learns that her injuries are more serious than she realized.The release

Triple-D Cinemas promises to pay Shakir $1,000 to repair and clean its marquee.The act of doing this work is

If a debt is in dispute,an accord and satisfaction cannot take place.

Credit & Debt Corporation loans Evelyn $25,000 to start a new business.Evelyn does not pay,but Credit & Debt fails to sue within the time prescribed by the applicable statute of limitations.Evelyn promises to pay a portion of the debt even though recovery is barred.Credit & Debt can sue to recover