Question 1

A promise to pay a previous debt barred by a statute of limitations can be enforced without consideration.

Accepted Answer

A) True 
 B)False

Question 2

Centre City Properties, Inc., owns and manages a warehouse. DIY Home Improvement Stores agrees to lease the warehouse for six years. Under the lease, DIY is obligated to pay all of the utility costs. Two years into the term, DIY asks Centre City to modify the lease to provide that the utility costs will be split equally between them. The landlord agrees, but later decides it does not want to share the costs and refuses to pay. Is Centre City bound to its agreement to share the utility costs? Why or why not?

Accepted Answer

Centre City Properties, Inc., the landlo...

Question 3

Providing accounting services is "something of legally sufficient value."

Accepted Answer

A) True 
 B)False

Question 4

To constitute consideration, there must be

Accepted Answer

A)  a payment.
B)  a performance.
C)  a bargained-for exchange.
D)  serious thought underlying each party's intent to contract.E) None of the above
F) All of the above

Question 5

Two parties can mutually agree to rescind a contract only to the extent that it has been executed-otherwise, there is nothing to rescind.

Accepted Answer

A) True 
 B)False

Question 6

A promise to do something that one has no prior legal duty to do is not legally sufficient consideration.

Accepted Answer

A) True 
 B)False

Question 7

In general, courts question the adequacy of consideration.

Accepted Answer

A) True 
 B)False

Question 8

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

Accepted Answer

A)  imposes a moral obligation on Kim to pay Leo.
B)  imposes no obligation on Kim unless she is satisfied with the job.
C)  is not sufficient consideration because it is not goods or money.
D)  is the consideration that creates Kim's obligation to pay Leo.E) A) and B)
F) A) and C)

Question 9

Fritz offers to buy a guitar owned by Holle for twice what she paid for it. She accepts and hands the guitar to Fritz. Holle's delivery of the guitar is

Accepted Answer

A)  not consideration because its adequacy is unfair.
B)  not consideration because the exchange is not a bargain.
C)  consideration.
D)  not consideration because the value is not legally sufficient.E) C) and D)
F) A) and D)

Question 10

Consideration must provide the basis for the bargain struck between contracting parties.

Accepted Answer

A) True 
 B)False

Question 11

EcoEnergy LLC files a suit against Fiber Optics Inc., claiming that the consideration for their contract is inadequate-that the plaintiff will not realize sufficient financial benefit from the deal to make it worthwhile. Most likely, the court will

Accepted Answer

A)  evaluate the fairness of the bargain.
B)  ask "how much" consideration was given.
C)  not question the adequacy of consideration.
D)  not determine whether consideration was exchanged.E) A) and D)
F) None of the above

Question 12

Consideration refers to one party's assessment of the other party to a contract.

Accepted Answer

A) True 
 B)False

Question 13

Jen promises to pay Kam $500 because "she does not have as much money as other people." Jen's promise is

Accepted Answer

A)  enforceable because society wants people to keep their promises.
B)  enforceable because the redistribution of wealth is a valid social goal.
C)  not enforceable because Jen could have paid Kam more.
D)  not enforceable because Kam has not given consideration in return.E) B) and C)
F) C) and D)

Question 14

Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can

Accepted Answer

A)  recover the balance for lack of consideration.
B)  recover the balance because the consideration was past.
C)  recover the balance due to unforeseen events.
D)  not recover the balance.E) B) and C)
F) All of the above

Question 15

National Trucking Company begins transporting crude for Oil Inc. under a contract for a stated amount per load. After six months, National demands an increase in the stated amount because ordinary business expenses have increased. Oil's agreement to pay the increased amount 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) All of the above

Question 16

Painting a garage can constitute "something of legally sufficient value."

Accepted Answer

A) True 
 B)False

Question 17

To pay on receipt of certain goods is "something of legally sufficient value."

Accepted Answer

A) True 
 B)False

Question 18

A preexisting duty may arise out of a previous contract.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

With respect to consideration, the application of the rule regarding preexisting duty is meant to prevent extortion.

Accepted Answer

A) True 
 B)False

Exam 13: Consideration

Fritz offers to buy a guitar owned by Holle for twice what she paid for it. She accepts and hands the guitar to Fritz. Holle's delivery of the guitar is

Correct Answer
verified

A promise to do something that one has no prior legal duty to do is not legally sufficient consideration.

Correct Answer
verified

To constitute consideration, there must be

Correct Answer
verified

Jen promises to pay Kam $500 because "she does not have as much money as other people." Jen's promise is

Correct Answer
verified

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

Correct Answer
verified

In general, courts question the adequacy of consideration.

Correct Answer
verified

Providing accounting services is "something of legally sufficient value."

Correct Answer
verified

Consideration must provide the basis for the bargain struck between contracting parties.

Correct Answer
verified

National Trucking Company begins transporting crude for Oil Inc. under a contract for a stated amount per load. After six months, National demands an increase in the stated amount because ordinary business expenses have increased. Oil's agreement to pay the increased amount is

Correct Answer
verified

Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can

Correct Answer
verified

A preexisting duty may arise out of a previous contract.

Correct Answer
verified

Consideration refers to one party's assessment of the other party to a contract.

Correct Answer
verified

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

Correct Answer
verified

Painting a garage can constitute "something of legally sufficient value."

Correct Answer
verified

To pay on receipt of certain goods is "something of legally sufficient value."

Correct Answer
verified

Correct Answer
verified
Centre City Properties, Inc., the landlo...
View Answer

EcoEnergy LLC files a suit against Fiber Optics Inc., claiming that the consideration for their contract is inadequate-that the plaintiff will not realize sufficient financial benefit from the deal to make it worthwhile. Most likely, the court will

Correct Answer
verified

With respect to consideration, the application of the rule regarding preexisting duty is meant to prevent extortion.

Correct Answer
verified

A promise to pay a previous debt barred by a statute of limitations can be enforced without consideration.

Correct Answer
verified

Two parties can mutually agree to rescind a contract only to the extent that it has been executed-otherwise, there is nothing to rescind.

Correct Answer
verified

Exam 13: Consideration

Fritz offers to buy a guitar owned by Holle for twice what she paid for it. She accepts and hands the guitar to Fritz. Holle's delivery of the guitar is

Correct AnswerverifiedShow Answer

A promise to do something that one has no prior legal duty to do is not legally sufficient consideration.

Correct AnswerverifiedShow Answer

To constitute consideration, there must be

Correct AnswerverifiedShow Answer

Jen promises to pay Kam $500 because "she does not have as much money as other people." Jen's promise is

Correct AnswerverifiedShow Answer

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

Correct AnswerverifiedShow Answer

In general, courts question the adequacy of consideration.

Correct AnswerverifiedShow Answer

Providing accounting services is "something of legally sufficient value."

Correct AnswerverifiedShow Answer

Consideration must provide the basis for the bargain struck between contracting parties.

Correct AnswerverifiedShow Answer

National Trucking Company begins transporting crude for Oil Inc. under a contract for a stated amount per load. After six months, National demands an increase in the stated amount because ordinary business expenses have increased. Oil's agreement to pay the increased amount is

Correct AnswerverifiedShow Answer

Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can

Correct AnswerverifiedShow Answer

A preexisting duty may arise out of a previous contract.

Correct AnswerverifiedShow Answer

Consideration refers to one party's assessment of the other party to a contract.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Painting a garage can constitute "something of legally sufficient value."

Correct AnswerverifiedShow Answer

To pay on receipt of certain goods is "something of legally sufficient value."

Correct AnswerverifiedShow Answer

Correct AnswerverifiedCentre City Properties, Inc., the landlo...View AnswerShow Answer

EcoEnergy LLC files a suit against Fiber Optics Inc., claiming that the consideration for their contract is inadequate-that the plaintiff will not realize sufficient financial benefit from the deal to make it worthwhile. Most likely, the court will

Correct AnswerverifiedShow Answer

With respect to consideration, the application of the rule regarding preexisting duty is meant to prevent extortion.

Correct AnswerverifiedShow Answer

A promise to pay a previous debt barred by a statute of limitations can be enforced without consideration.

Correct AnswerverifiedShow Answer

Two parties can mutually agree to rescind a contract only to the extent that it has been executed-otherwise, there is nothing to rescind.

Correct AnswerverifiedShow Answer

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Centre City Properties, Inc., the landlo...
View Answer

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