Question 1

Forfeiting a right to sue to recover further damages can constitute consideration.

Accepted Answer

A) True 
 B)False

Question 2

Ros contracts with Spicy Pizza to deliver its products. After the deal has been partially performed, both parties inform each other that they would like to cancel the contract. Ros and Spicy may rescind

Accepted Answer

A)  their entire contract.
B)  their contract to the extent that it is executory.
C)  none of their contract.
D)  their contract to the extent that it has been executed.E) B) and D)
F) A) and B)

Question 3

With respect to consideration, a bargained-for exchange refers to the location, such as a stock exchange, where the contracting parties negotiated their deal.

Accepted Answer

A) True 
 B)False

Question 4

Si promises to pay his personal assistant Tery $50,000 in consideration of the services she provided over the years. Si never makes the payment. Si's promise is

Accepted Answer

A)  enforceable for the entire $50,000.
B)  enforceable to the extent of what Tery's services were actually worth.
C)  not enforceable because the consideration is in the past.
D)  not enforceable because the failure to pay is an unforeseen difficulty.E) C) and D)
F) All of the above

Question 5

The performance of an action that one is not otherwise obligated to undertake is not legally sufficient consideration.

Accepted Answer

A) True 
 B)False

Question 6

Cloud Storage Inc. promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is

Accepted Answer

A)  an enforceable contract.
B)  an illusory promise.
C)  accord and satisfaction.
D)  past consideration.E) A) and B)
F) B) and D)

Question 7

To apply the doctrine of promissory estoppel in a given situation, there must exist no clear or definite promise.

Accepted Answer

A) True 
 B)False

Question 8

A preexisting duty may be imposed by law.

Accepted Answer

A) True 
 B)False

Question 9

Sol offers Tiff $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely

Accepted Answer

A)  enforce the deal after questioning the adequacy of consideration.
B)  not question the adequacy of the consideration.
C)  rewrite the deal after questioning the adequacy of consideration.
D)  set aside the deal after questioning the adequacy of consideration.E) None of the above
F) A) and B)

Question 10

When the doctrine of promissory estoppel is applied, the promisor is estopped, or barred, from performing the promise.

Accepted Answer

A) True 
 B)False

Question 11

Bistro Caterers contracts with Corporate Towers to cater the firm's business meetings. Later, the contract between Bistro and Corporate is completely rescinded. Even later, Bistro offers to make a new deal. Corporate is willing to deal, but for a new price. Bistro and Corporate

Accepted Answer

A)  may agree to a new contract, but it cannot include a new price.
B)  may agree to a new contract that includes the new price.
C)  must perform their original contract.
D)  must perform the part of their original contract that is executory.E) A) and B)
F) C) and D)

Question 12

Holes Inc. begins digging a foundation at a construction site for Investment Company under a contract for a certain price. After six months, Holes demands a higher price because of extraordinary difficulties that were totally unforeseen at the time the contract was formed. An agreement to pay the higher price is

Accepted Answer

A)  enforceable as the consideration is past.
B)  enforceable due to unforeseen difficulties.
C)  unenforceable as an illusory promise.
D)  unenforceable due to the preexisting duty rule.E) B) and D)
F) A) and B)

Exam 13: Consideration

To apply the doctrine of promissory estoppel in a given situation, there must exist no clear or definite promise.

Correct Answer
verified

Cloud Storage Inc. promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is

Correct Answer
verified

Forfeiting a right to sue to recover further damages can constitute consideration.

Correct Answer
verified

Sol offers Tiff $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely

Correct Answer
verified

With respect to consideration, a bargained-for exchange refers to the location, such as a stock exchange, where the contracting parties negotiated their deal.

Correct Answer
verified

The performance of an action that one is not otherwise obligated to undertake is not legally sufficient consideration.

Correct Answer
verified

A preexisting duty may be imposed by law.

Correct Answer
verified

Ros contracts with Spicy Pizza to deliver its products. After the deal has been partially performed, both parties inform each other that they would like to cancel the contract. Ros and Spicy may rescind

Correct Answer
verified

Bistro Caterers contracts with Corporate Towers to cater the firm's business meetings. Later, the contract between Bistro and Corporate is completely rescinded. Even later, Bistro offers to make a new deal. Corporate is willing to deal, but for a new price. Bistro and Corporate

Correct Answer
verified

Correct Answer
verified

When the doctrine of promissory estoppel is applied, the promisor is estopped, or barred, from performing the promise.

Correct Answer
verified

Si promises to pay his personal assistant Tery $50,000 in consideration of the services she provided over the years. Si never makes the payment. Si's promise is

Correct Answer
verified

Exam 13: Consideration

To apply the doctrine of promissory estoppel in a given situation, there must exist no clear or definite promise.

Correct AnswerverifiedShow Answer

Cloud Storage Inc. promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is

Correct AnswerverifiedShow Answer

Forfeiting a right to sue to recover further damages can constitute consideration.

Correct AnswerverifiedShow Answer

Sol offers Tiff $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely

Correct AnswerverifiedShow Answer

With respect to consideration, a bargained-for exchange refers to the location, such as a stock exchange, where the contracting parties negotiated their deal.

Correct AnswerverifiedShow Answer

The performance of an action that one is not otherwise obligated to undertake is not legally sufficient consideration.

Correct AnswerverifiedShow Answer

A preexisting duty may be imposed by law.

Correct AnswerverifiedShow Answer

Ros contracts with Spicy Pizza to deliver its products. After the deal has been partially performed, both parties inform each other that they would like to cancel the contract. Ros and Spicy may rescind

Correct AnswerverifiedShow Answer

Bistro Caterers contracts with Corporate Towers to cater the firm's business meetings. Later, the contract between Bistro and Corporate is completely rescinded. Even later, Bistro offers to make a new deal. Corporate is willing to deal, but for a new price. Bistro and Corporate

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the doctrine of promissory estoppel is applied, the promisor is estopped, or barred, from performing the promise.

Correct AnswerverifiedShow Answer

Si promises to pay his personal assistant Tery $50,000 in consideration of the services she provided over the years. Si never makes the payment. Si's promise is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

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Correct Answer
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