Contract Law: Composition of Creditors

<p>A promise to refrain from a legal activity, even though it is already illegal for the promisor to perform it (D)</p> Signup and view all the answers

<p>Avoiding bankruptcy proceedings (B)</p> Signup and view all the answers

<p>All of the above (D)</p> Signup and view all the answers

<p>It extinguishes the creditor's right to sue for the claim (D)</p> Signup and view all the answers

<p>It could lead to a loss of legal rights (C)</p> Signup and view all the answers

<p>To imprint a unique design onto the wax seal. (A)</p> Signup and view all the answers

<p>It must be something of value to both parties involved. (D)</p> Signup and view all the answers

<p>Yes, as it represents a detriment to the band by restricting their performance. (C)</p> Signup and view all the answers

<p>The engine was worth significantly more than $65, implying a lack of fair exchange. (A)</p> Signup and view all the answers

<p>A promise made by one party in exchange for a benefit received by another party. (D)</p> Signup and view all the answers

<p>Both parties are bound to fulfill their promises, even if they find it disadvantageous. (B)</p> Signup and view all the answers

<p>Formal contracts (A)</p> Signup and view all the answers

<p>The rigid social hierarchy reduced the need for formal agreements. (B)</p> Signup and view all the answers

<p>To provide a service in exchange for the development and printing of the film. (A)</p> Signup and view all the answers

<p>The students' agreement to develop and print the film. (C)</p> Signup and view all the answers

<p>The band members received consideration in exchange for ceasing loud practice. (B)</p> Signup and view all the answers

<p>The Sunnyside Camera Shop scenario involves consideration on both sides, while the rock band scenario only involves consideration for the band. (A)</p> Signup and view all the answers

<p>Courts will not concern themselves with the value of the consideration exchanged. (D)</p> Signup and view all the answers

<p>Consideration that represents a genuine exchange of value. (A)</p> Signup and view all the answers

<p>Promissory estoppel (A)</p> Signup and view all the answers

<p>The promisor must receive something in return for the promise. (A)</p> Signup and view all the answers

<p>Pledge (B)</p> Signup and view all the answers

<p>The hospital's reliance on the pledge (A)</p> Signup and view all the answers

<p>The hospital would suffer a substantial economic loss if the pledge is not enforced. (B)</p> Signup and view all the answers

<p>Pledges can be legally enforced under the doctrine of promissory estoppel. (B)</p> Signup and view all the answers

<p>The promisor's intention to make a gift. (A)</p> Signup and view all the answers

<p>To prevent unfair economic losses resulting from reliance on promises. (C)</p> Signup and view all the answers

<p>Mutual gifts (C)</p> Signup and view all the answers

<p>Consideration can arise from a duty of fair dealings, even in the absence of a bargained-for exchange. (A)</p> Signup and view all the answers

<p>Yes, because the buyer has complete control over the contract and can end their obligations at any time, making it impossible to enforce. (C)</p> Signup and view all the answers

<p>A gift (B)</p> Signup and view all the answers

<p>Mutuality of obligation (C)</p> Signup and view all the answers

<p>True (B)</p> Signup and view all the answers

<p>The driver's promise was not made in exchange for Francis's service. (C)</p> Signup and view all the answers

<p>Yes, because a pre-existing debt creates a legally binding duty. (D)</p> Signup and view all the answers

<p>Promissory Estoppel (D)</p> Signup and view all the answers

<p>The twins relied on Silvertone's promise and incurred expenses they wouldn't have otherwise. (C)</p> Signup and view all the answers

<p>The twins' actions in undertaking the trip demonstrate their reliance on Silvertone's promise. (C)</p> Signup and view all the answers

<p>Cardinal will likely win the lawsuit because Plony's withdrawal of the bid caused Cardinal financial harm. (C)</p> Signup and view all the answers

<p>A real estate agent tells a client that a property is available for purchasing, and the client signs a contract, only to discover the property has already been sold. (D)</p> Signup and view all the answers

<p>A promise that was relied upon by the other party and a detriment suffered as a result of that reliance. (B)</p> Signup and view all the answers

<p>To protect the interests of those who have relied on promises to their detriment. (A)</p> Signup and view all the answers

<p>The promise must be made in writing and signed by the promisor. (C)</p> Signup and view all the answers

Legal value exchanged in a contract, typically a benefit to one party and a detriment to another.

The ability of a contract to be upheld in a court of law, often dependent on consideration.

A contract that is formally documented and sealed, often making it more legally binding.

A mutual agreement where both parties agree to provide something of value.

Local laws that regulate the acceptable levels of noise in a community.

A legally binding agreement that meets all essential elements, including consideration.

Something lost or given up by one party in a contract, often in exchange for a benefit.

The worth that an item or promise holds in a legal context, necessary for consideration.

A legally binding agreement between parties that can be upheld in court.

A small or token amount of consideration, often not reflective of actual value.

A fair exchange of value that is generally acceptable.

Agreements commonly understood and upheld during medieval times, often informal.

Breaking a local law regarding acceptable noise levels.

A term that signifies an agreement can be enforced by law.

Contract where the shop provides film in exchange for development services.

A legal agreement where a debtor pays less than the full amount owed, receiving a promise not to sue.

An understanding between creditor and debtor to modify a contract.

Payment or promise must provide enough value to support a release.

A creditor receives a benefit by receiving payment before due date.

An agreement where creditors accept less than owed in exchange for no bankruptcy filing.

Signing releases too soon can harm individuals financially.

Consideration must involve giving up a legal right for an agreement to be valid.

A promise that lacks legal obligation or enforceability, often because it provides no real commitment.

Gifts given without a trade, where each party offers something of value but without an exchange.

An advantage obtained from an agreement that changes one's legal position.

Both parties in a contract must exchange something of value for it to be valid.

A promise made after an action has already taken place, which may not constitute valid consideration.

The advantage gained by Georgia's neighbors in the agreement to control her speed.

Actions that have already occurred which do not count as consideration for a new contract.

A legal principle that enforces a promise when one party relies on it to their detriment.

A commitment by Silvertone to pay twins for their travel expenses upon their return.

Total reasonable expenses for the twins exceeded $9,500 during their trip.

Cardinal's bid was the lowest for subcontractors' work and relied on twins' promise.

Silvertone may be liable for the twins' expenses due to their reliance on his promise.

The twins acted on Silvertone's promise, which is essential for promissory estoppel.

Situations where consideration may not be necessary for contractual obligation.

A loss or disadvantage experienced by the promisee due to reliance on the promise.

The expectation that a promisor should anticipate that the promisee will rely on their promise.

A significant loss that the promisee would suffer if the promise is not kept.

The act of the promisee taking action based on the reasonable belief that the promise will be fulfilled.

A donor can be held accountable for pledges to charities, even without consideration.

A promise to make a donation or pay a certain amount in the future, often used in fundraising.

Situations where a promise can be enforced without the standard exchange of consideration.

The principle ensuring that a promise must be enforced to prevent unfair outcomes.