Exam 8: Agreement and Consideration

Ritzy Property,Inc. ,offers to sell a warehouse to Self-Storage Company.Self-Storage says that it will pay Ritzy $100 to hold the offer open for three business days.This

An acceptance that materially changes a term in the offer still creates a valid agreement.

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

If the subject matter of an offer is destroyed,the offer will continue to ex?ist for a rea?son?able time to permit the seller to acquire replacement goods.

First State Bank offers to lend money to Greco at 15 percent interest.Before Greco accepts,a statute is enacted prohibiting loans at interest rates greater than 12 percent.Greco and the bank have

An offeror cannot revoke an option contract until the time specified in the offer has expired.

Craig decides to sell his Double-C Ranch in an auction "without reserve." If Craig changes his mind at the auction,he can withdraw his property

Lolly offers to deliver to My-T-Fine Store's customers their purchases for a certain price.Lolly's intent to extend a serious offer to My-T-Fine is de?termined by reference to Lolly's

Fact Pattern 8-2 Brad 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 considera?tion for their contract was inadequate. -Refer to Fact Pattern 8-2.If,as Brad claims,the consideration in this problem is inadequate,it may indicate a lack of

Luna tells Kofi,who has no knowledge of literary thrillers,that she will tutor him in the subject for $50.As an offer,this is

Jane offers to sell Kyle three desks for his Lights & Lamps Company ad?ministrative office.Kyle sends a rejec?tion first,then changes his mind and sends an acceptance.Whether they have a contract is determined by

Fact Pattern 8-3 Dag and Enita are in an auto accident.Dag offers Enita $2,000 if she promises not to pursue her potential legal claim against him.Enita agrees.Later,Enita discovers that it will cost $1,500 to repair her car and $4,000 to cover her medical expenses for a latent injury. -Refer to Fact Pattern 8-3.In Enita's suit against Dag to recover her re?pair and medical expenses,Enita will most likely recover

An offeror's subjective intent determines the validity of an offer.

Auto Body Repair Shop (ABRS)promises to pay Ben $1,000 a week to work for ABRS.Ben accepts and quits his job with Car Care Service.ABRS fails to provide a job for Ben.Ben has a cause of action based on

To be legally sufficient,consideration must include something of eco?nomic value.

A promise made with respect to a past event is enforceable because the event is cer?tain-it has already occurred.

An advertisement-"this property for sale"-is an offer.

Geof offers to sell his Honda for $10,000 to Ilsa,who says,"I'll pay no more than $5,000." Geof says,"Forget it.I changed my mind." Geof's offer was terminated by

Royal Properties,Inc. ,mails a flyer to hundreds of firms,advertising a building for sale.Super Soup Brewing Company responds by saying,"We accept your offer." Between Royal and Super,there is

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