Exam 12: B: Consideration

A covenant not to sue is against public policy.

Two parties can mutually agree to rescind a contract unless it is executory.

A promise by one party to pay another for refraining from an act is enforceable.

A promise to pay for an act that has yet to occur is unenforceable.

Courts typically consider the adequacy of consideration.

Under a contract with Bucolic Farms,Agro Excavation,Inc. ,begins digging an agricultural pond.In mid-project,Agro asks for $15,000 over the contract price,claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay.Their agreement is

Fact Pattern 12-A1 Jesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate. -Refer to Fact Pattern 12-A1."Adequacy" of consideration refers to

Use of the word consideration in an agreement means that consideration has been given.

Fact Pattern 12-A1 Jesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate. -Refer to Fact Pattern 12-A1.If,as Jesse claims,the consideration in this problem is inadequate,it may indicate a lack of

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

Fact Pattern 12-A2 Cut-Rate Construction Company (CCC)begins building a restaurant for Diners Restaurants,Inc. ,but after two months demands an extra $100,000.Diners agrees to pay. -Refer to Fact Pattern 12-A2.If CCC offers,as a reason for the extra $100,000,that extraordinary unforeseen difficulties will add consid?erable cost to the project,the agreement is

A release does not require consideration to be legally binding.

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

Flossy promises to pay her cousin Garth,who is dangerously obese,$10,000 if Garth loses 100 pounds within the next two years.Garth agrees,per?forms his part of the bar?gain,and asks for the money.Flossy refuses to pay,say?ing that she forgot about the deal,but that even if she did make such a pledge,there was no valid consideration for it.Garth files a suit against Flossy.In whose favor is the court likely to rule,and why?

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

The doctrine of promissory estoppel does not apply if there is a clear and definite promise.

Homebuyers Mortgage Corporation's promise to pay its employees a year-end bonus "if it seems like a good idea at the time" is

Risks ordinarily assumed in business do not constitute consideration for the modification of a contract.

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

Berkie's bicycle is damaged in an accident caused by Imogene.Berkie agrees not to sue Imogene if she will pay for the damage.If she fails to pay,Berkie can bring an action for breach of contract.This is