Question 1

Which of the following considerations is legally insufficient?

Accepted Answer

A)   Tony bought a book for $100. Ruby offers to buy it for $10.
B)   Tony bought a book for $100. He offers to sell it for free if Ruby helps him in shifting to his new house.
C)   Tony bought a book for $1,000. Ruby offers to buy it for $2,000 if it does not rain the next day.
D)   Tony bought a book for $100. He offers to sell it to Ruby for free if she helps him befriend the new girl in their lane.
E)   Tony bought a book for $1,000. He offers to sell it to Ruby for $10 if she quits drinking.

Question 2

A legal consideration always has to be certain.

Accepted Answer

A) True 
 B)False

Question 3

In which of the following situations is consideration required?

Accepted Answer

A)   An agreement modifies a sales contract.
B)   A promise to act a pre-existing duty.
C)   The contract does not bind the promisor to give up anything.
D)   A person promises a benefit to someone to do something which the promisee is already disallowed from doing.
E)   A voidable promise has been renewed by the promise.

Question 4

Because the consideration on option contracts is nominal, its recital in the written instrument is usually a mere formality, and it is frequently paid.

Accepted Answer

A) True 
 B)False

Question 5

An exclusive dealing agreement is one where a person can pay his creditors on a pro-rata basis.

Accepted Answer

A) True 
 B)False

Question 6

A debt can be liquidated by being written down in unambiguous terms.

Accepted Answer

A) True 
 B)False

Question 7

What is consideration? What are the purposes served by consideration? What are the elements of consideration?

Accepted Answer

Consideration is a set of mutual promise...

Question 8

Identify the legally insufficient consideration.

Accepted Answer

A)   Alex promised to pay Tom for his car in four installments of $1,000 each. He fails to pay these installments. Tom threatens suit, to which Alex promises to pay just $100 in exchange for Tom's promise to release him from the remainder of the amount.
B)   Alex promised to pay Tom for his car in four installments of $1,000 each. He fails to pay these installments. Tom threatens to sue him, to which Alex promises to pay an interest of 2 percent whenever he gets his debtors to repay him.
C)   Alex promised to pay $1,000 to Tom for his car, due March 1. On March 1, Tom pays only $400 in exchange for Tom's promise to release him from the remainder of the amount.
D)   Alex promised to pay $1,000 to Tom for his car, due March 1. On February 27, Tom pays only $400 in exchange for Tom's promise to release him from the remainder of the amount.
E)   Alex promised to pay $1,000 to Tom for his car, due March 1. On March 18, Tom pays only $400 and takes Alex to the carnival.

Question 9

The UCC permits one party to discharge, without consideration, a claim arising out of an alleged breach of contract by the other party.

Accepted Answer

A) True 
 B)False

Question 10

In Denney v. Reppert, which of the following led to the final judgment by the court?

Accepted Answer

A)   Illusory promise
B)   Out of bailiwick
C)   Promissory estoppel
D)   Promise revived after statute of limitations has passed
E)   Liquidated damage

Question 11

If a promisor gives an illusory promise, he/she gives no consideration and no contract is formed.

Accepted Answer

A) True 
 B)False

Question 12

In Gross v. Diehl Specialties Intern., Inc., the court determined that the plaintiff's post-employment benefits should revert to those in his original contract, because of a detriment to him.

Accepted Answer

A) True 
 B)False

Exam 11: Consideration

In Denney v. Reppert, which of the following led to the final judgment by the court?

Correct Answer
verified

Because the consideration on option contracts is nominal, its recital in the written instrument is usually a mere formality, and it is frequently paid.

Correct Answer
verified

If a promisor gives an illusory promise, he/she gives no consideration and no contract is formed.

Correct Answer
verified

An exclusive dealing agreement is one where a person can pay his creditors on a pro-rata basis.

Correct Answer
verified

Which of the following considerations is legally insufficient?

Correct Answer
verified

A debt can be liquidated by being written down in unambiguous terms.

Correct Answer
verified

A legal consideration always has to be certain.

Correct Answer
verified

In Gross v. Diehl Specialties Intern., Inc., the court determined that the plaintiff's post-employment benefits should revert to those in his original contract, because of a detriment to him.

Correct Answer
verified

What is consideration? What are the purposes served by consideration? What are the elements of consideration?

Correct Answer
verified
Consideration is a set of mutual promise...
View Answer

The UCC permits one party to discharge, without consideration, a claim arising out of an alleged breach of contract by the other party.

Correct Answer
verified

In which of the following situations is consideration required?

Correct Answer
verified

Identify the legally insufficient consideration.

Correct Answer
verified

Exam 11: Consideration

In Denney v. Reppert, which of the following led to the final judgment by the court?

Correct AnswerverifiedShow Answer

Because the consideration on option contracts is nominal, its recital in the written instrument is usually a mere formality, and it is frequently paid.

Correct AnswerverifiedShow Answer

If a promisor gives an illusory promise, he/she gives no consideration and no contract is formed.

Correct AnswerverifiedShow Answer

An exclusive dealing agreement is one where a person can pay his creditors on a pro-rata basis.

Correct AnswerverifiedShow Answer

Which of the following considerations is legally insufficient?

Correct AnswerverifiedShow Answer

A debt can be liquidated by being written down in unambiguous terms.

Correct AnswerverifiedShow Answer

A legal consideration always has to be certain.

Correct AnswerverifiedShow Answer

In Gross v. Diehl Specialties Intern., Inc., the court determined that the plaintiff's post-employment benefits should revert to those in his original contract, because of a detriment to him.

Correct AnswerverifiedShow Answer

What is consideration? What are the purposes served by consideration? What are the elements of consideration?

Correct AnswerverifiedConsideration is a set of mutual promise...View AnswerShow Answer

The UCC permits one party to discharge, without consideration, a claim arising out of an alleged breach of contract by the other party.

Correct AnswerverifiedShow Answer

In which of the following situations is consideration required?

Correct AnswerverifiedShow Answer

Identify the legally insufficient consideration.

Correct AnswerverifiedShow 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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Correct Answer
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Correct Answer
verified
Consideration is a set of mutual promise...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified