Question 1

Which of the following is not an example of consideration?

Accepted Answer

A)   A promise to stay in a job until a particular project is complete.
B)   A promise to your football coach to refrain from riding your motorcycle during football season even though you love riding it.
C)   A promise to cook dinner for your roommate for the next six months.
D)   A promise to buy skis for $300 if you like them.
E)   A promise to stop staying out late at night during exam week.F) A) and B)
G) B) and E)

Question 2

What is the preexisting duty rule?

Accepted Answer

The performance of a duty one ...

Question 3

Which of the following would not be considered an example of consideration?

Accepted Answer

A)   A promise to be on time for class all semester.
B)   A promise to stop drinking sports drinks.
C)   A promise to walk the neighbor's dog.
D)   A promise to call the police if the neighbor's alarm system should go off while they are on vacation.
E)   A promise to pay your employees as required by law.F) None of the above
G) A) and E)

Question 4

Henry's boss,Jacob,tells him that because he has been such a valuable employee,he will receive an extra week of vacation.When Henry decides to schedule the vacation,he reminds Jacob of his statement.Jacob says that he has changed his mind and that he really cannot afford to let Henry off.Henry says that Jacob has breached the contract he had with Jacob for an extra vacation week.Assuming injustice cannot be established,who is right and why regarding whether a valid contract for an extra week off existed?

Accepted Answer

Jacob is not required to allow...

Question 5

Which of the following is true regarding the preexisting duty rule?

Accepted Answer

A)   Unforeseen circumstances is an exception, but additional work and past consideration are not exceptions.
B)   Additional work is an exception, but unforeseen circumstances and past consideration are not exceptions.
C)   Past consideration is an exception, but unforeseen circumstances and additional work are not exceptions.
D)   Unforeseen circumstances and additional work are exceptions, but past consideration is not an exception.
E)   Unforeseen circumstances and past consideration are exceptions, but additional work is not an exception.F) C) and D)
G) All of the above

Question 6

In a bilateral contract,the consideration for a promise is a completed act.

Accepted Answer

A) True 
 B)False

Question 7

For a court to enforce a promise,______ must offer consideration.

Accepted Answer

A)   The offeror but not the offeree
B)   The offeree but not the offeror
C)   The acceptee but not the acceptor
D)   The acceptor but not the acceptee
E)   Each side to the contractF) B) and C)
G) D) and E)

Question 8

Which of the following is true regarding an accord and satisfaction?

Accepted Answer

A)   When amounts agreed upon are paid, the debt is fully discharged.
B)   When amounts agreed upon are paid, the debt is fully discharged except for any late charges due on the initial indebtedness.
C)   When amounts agreed upon are paid, the debt is fully discharged except for any interest due on the initial indebtedness.
D)   When amounts agreed upon are paid, the debt is fully discharged except for any late charges and for any interest due on the initial indebtedness.
E)   When amounts agreed upon are paid, the debt is fully discharged except for any late charges or interest due on the initial indebtedness, or attorney fees of the creditor that are due.F) A) and B)
G) A) and C)

Question 9

When an accord and satisfaction is at issue,the ______ is the payment,by the debtor,of the reduced amount.

Accepted Answer

A)   Satisfaction
B)   Accord
C)   Seal
D)   Written compromise
E)   Written acknowledgementF) B) and C)
G) A) and E)

Question 10

Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?

Accepted Answer

A)   Partial payment is consideration under all circumstances.
B)   Partial payment is not consideration under any circumstances.
C)   Partial payment is consideration if a liquidated debt is involved.
D)   Partial payment is consideration if an unliquidated debt is involved.
E)   Partial payment is consideration if an exception applies to the general rule that partial payment is not consideration for an unliquidated debt.F) A) and B)
G) A) and C)

Question 11

Sue is three months behind on her mortgage,and her lender filed negative information affecting her credit rating.Sue mailed one monthly payment to the lender along with a letter providing that she was making the payment on condition that the lender removes negative material sent to credit reporting agencies affecting her credit rating.The lender cashed the check but did not remove the negative information.Sue sues the bank for breach of contract.Which of the following is the most likely result?

Accepted Answer

A)   The bank will win because under the preexisting duty rule, Sue was already legally obligated to make the payment, and there was no consideration to support the contract.
B)   The bank will win because under federal law, once correct negative information is reported regarding a customer, it can be removed only if it is found to be untruthful.
C)   The bank will win because under state law, once correct negative information is reported regarding a customer, it can be removed only if it is found to be untruthful.
D)   Sue will win because the bank's cashing the check constituted acceptance of her offer, and a valid contract existed.
E)   Sue will win because the bank had an obligation to notify her that it was not accepting her offer before cashing the check.F) C) and E)
G) None of the above

Question 12

Which of the following was the result on appeal in Thelma Agnes Smith v.David Phillip Riley,the case in the text in which the plaintiff who had lived with the defendant out of wedlock for several years sought after they broke up to enforce two agreements regarding the sale and assignment of property to her?

Accepted Answer

A)   The court ruled in favor of the defendant on the basis that a recitation of nominal consideration of $1 along with love and affection was insufficient consideration to support a conveyance.
B)   The court ruled in favor of the plaintiff on the basis that a recitation of nominal consideration of $1 along with consideration of love and affection was adequate consideration to support the agreements.
C)   The court ruled in favor of the defendant on the basis that the plaintiff's previous deposit of funds into a joint checking account was insufficient consideration for the later agreements.
D)   The court ruled in favor of the plaintiff on the basis that the plaintiff's previous deposit of funds into a joint checking account was sufficient consideration for the later agreements.
E)   The court ordered the parties to divide on a 50/50 basis the assets in question based on their domestic partnership.F) A) and C)
G) A) and B) B

Question 13

A promise to do something that you are already obligated to do is ____.

Accepted Answer

A)   Valid consideration because it is illusory consideration
B)   Valid consideration only in the employment context
C)   Valid consideration because it is past consideration
D)   Valid consideration only if a sale of goods is involved
E)   Not valid considerationF) D) and E)
G) C) and D) E

Question 14

Which of the following is true regarding Jill's claim that by selling the communications book for a higher price,Richard breached the contract he had with her?

Accepted Answer

A)   Jill is correct.
B)   Jill is correct only if she can establish that she had prior dealings with Richard.
C)   Jill is correct only if she can establish that she had provided past consideration in addition to the amount she agreed to pay for the book.
D)   Jill is incorrect because her acceptance was illusory.
E)   Jill is incorrect because the amount she agreed to pay was significantly less than the fair market value of the book and, therefore, did not amount to consideration.F) None of the above
G) A) and E)

Question 15

A liquidated debt may be the subject of an accord and satisfaction.

Accepted Answer

A) True 
 B)False

Question 16

As discussed in the case of Double AA Builders Ltd.,v.Grand State Construction L.L.C.,which of the following may be used to necessitate that a subcontractor perform according to the terms of its bid because the contractor has relied on the subcontractor's bid?

Accepted Answer

A)   Consideration
B)   Primary consideration
C)   Promissory estoppel
D)   Reality estoppel
E)   Secondary considerationF) B) and D)
G) A) and D)

Question 17

One consideration in determining whether consideration is sufficient to support a contract for the sale of goods under the UCC is whether both parties received a good deal under UCC rules and principles.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is what a person will receive in return for performing a contract obligation?

Accepted Answer

A)   Consideration
B)   Acknowledgement
C)   Approval
D)   Accord
E)   AccessionF) B) and C)
G) B) and D)

Question 19

In a bilateral contract,the consideration for each promise is ____.

Accepted Answer

A)   A completed act
B)   The beginning of action in acceptance, even if it is not complete
C)   An acknowledgement
D)   A return promise
E)   An agreementF) B) and D)
G) A) and B)

Question 20

An exception to the rule requiring consideration is promissory estoppel.

Accepted Answer

A) True 
 B)False  True

Exam 15: Consideration

Which of the following is not an example of consideration?

Correct Answer
verified

What is the preexisting duty rule?

Correct Answer
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The performance of a duty one ...
View Answer

Which of the following would not be considered an example of consideration?

Correct Answer
verified

Correct Answer
verified
Jacob is not required to allow...
View Answer

Which of the following is true regarding the preexisting duty rule?

Correct Answer
verified

In a bilateral contract,the consideration for a promise is a completed act.

Correct Answer
verified

For a court to enforce a promise,______ must offer consideration.

Correct Answer
verified

Which of the following is true regarding an accord and satisfaction?

Correct Answer
verified

When an accord and satisfaction is at issue,the ______ is the payment,by the debtor,of the reduced amount.

Correct Answer
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Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?

Correct Answer
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Correct Answer
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Correct Answer
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B

A promise to do something that you are already obligated to do is ____.

Correct Answer
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E

Which of the following is true regarding Jill's claim that by selling the communications book for a higher price,Richard breached the contract he had with her?

Correct Answer
verified

A liquidated debt may be the subject of an accord and satisfaction.

Correct Answer
verified

As discussed in the case of Double AA Builders Ltd.,v.Grand State Construction L.L.C.,which of the following may be used to necessitate that a subcontractor perform according to the terms of its bid because the contractor has relied on the subcontractor's bid?

Correct Answer
verified

One consideration in determining whether consideration is sufficient to support a contract for the sale of goods under the UCC is whether both parties received a good deal under UCC rules and principles.

Correct Answer
verified

Which of the following is what a person will receive in return for performing a contract obligation?

Correct Answer
verified

In a bilateral contract,the consideration for each promise is ____.

Correct Answer
verified

An exception to the rule requiring consideration is promissory estoppel.

Correct Answer
verified
True

Exam 15: Consideration

Which of the following is not an example of consideration?

Correct AnswerverifiedShow Answer

What is the preexisting duty rule?

Correct AnswerverifiedThe performance of a duty one ...View AnswerShow Answer

Which of the following would not be considered an example of consideration?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedJacob is not required to allow...View AnswerShow Answer

Which of the following is true regarding the preexisting duty rule?

Correct AnswerverifiedShow Answer

In a bilateral contract,the consideration for a promise is a completed act.

Correct AnswerverifiedShow Answer

For a court to enforce a promise,______ must offer consideration.

Correct AnswerverifiedShow Answer

Which of the following is true regarding an accord and satisfaction?

Correct AnswerverifiedShow Answer

When an accord and satisfaction is at issue,the ______ is the payment,by the debtor,of the reduced amount.

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedB

A promise to do something that you are already obligated to do is ____.

Correct AnswerverifiedE

Which of the following is true regarding Jill's claim that by selling the communications book for a higher price,Richard breached the contract he had with her?

Correct AnswerverifiedShow Answer

A liquidated debt may be the subject of an accord and satisfaction.

Correct AnswerverifiedShow Answer

As discussed in the case of Double AA Builders Ltd.,v.Grand State Construction L.L.C.,which of the following may be used to necessitate that a subcontractor perform according to the terms of its bid because the contractor has relied on the subcontractor's bid?

Correct AnswerverifiedShow Answer

One consideration in determining whether consideration is sufficient to support a contract for the sale of goods under the UCC is whether both parties received a good deal under UCC rules and principles.

Correct AnswerverifiedShow Answer

Which of the following is what a person will receive in return for performing a contract obligation?

Correct AnswerverifiedShow Answer

In a bilateral contract,the consideration for each promise is ____.

Correct AnswerverifiedShow Answer

An exception to the rule requiring consideration is promissory estoppel.

Correct AnswerverifiedTrue

Correct Answer
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Correct Answer
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The performance of a duty one ...
View Answer

Correct Answer
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Correct Answer
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Jacob is not required to allow...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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E

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True