Questions and Answers
What is Bob's promise regarding house checks?
To drive by the house and check on it during his off-duty time.
Smith's promise to pay Joe an increased amount is enforceable because:
Ralph's agreement not to sue after receiving $10,000 represents what kind of debt?
If Mary changes her mind about giving her car, the court will most likely:
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In order for a contract to be valid, it must contain what?
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Consideration can best be described as:
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An agreement that is lacking consideration:
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Which of the following can be considered consideration?
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In a two-party contract, which is true about consideration?
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Legal detriment in the context of consideration means:
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To meet the contractual requirement, consideration must be:
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A promise to deliver merchandise in the future:
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The requirement that consideration be bargained-for means that:
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A promise to refrain from underage drinking in exchange for $10,000:
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An illusory promise is:
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When a seller promises a buyer to sell all of an item that it produces, this results in:
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Which of the following constitutes legal consideration?
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Which of the following most likely constitutes legal consideration?
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If Sam, a high school senior, promises to go to school every day in exchange for an 'A' in his history class, his promise will most likely:
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An agreement to settle an earlier contract that was in dispute is:
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Two friends, Ann and Mary, are having margaritas at happy hour. Ann says, 'I will pay for everything tonight including your drinks.' If Ann later changes her mind, a court would likely:
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Jean sold her car undervalued and wants to return $500 to the purchaser to get her car back. The likely outcome is:
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Seasonal Selections, Inc. enters a contract to purchase all balsam fir tree boughs it needs. This contract is:
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Lode Mines has a contract with Ajax Photo Labs for purchasing all requirements of silver. If Ajax orders additional silver after prices rise, the most likely outcome is:
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Regarding the sale of an extra 100 units requested by Buyer, Seller says he will sell them if he doesn't sell to other customers. What is true?
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Lisa enters into a contract for groceries 'as she determines appropriate in the future'. This is an example of:
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Worldwide Motor Company enters a contract with Good Tire Co. allowing cancellation at any time. This contract is:
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Frieda offered a security officer $100 to resolve a problem. Is there sufficient consideration?
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Caterer agreed to cater a wedding for $12 per plate but then requested $16. Which is true?
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Ricky, a basketball player, demands an additional $5,000 per game. Most likely:
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Cheryl promised a $4,000 bonus to her builder after the job is done. What is most likely the result?
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Frank's boss promises him a $1,000 bonus for past work. Is the company obligated to pay?
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In which of the following situations have both parties given consideration to support a contract?
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In which of the following situations is there adequate consideration on the part of the promisor to support enforcement of a contract?
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Study Notes
Contract Validity
- A valid contract requires an offer, acceptance, and consideration.
- Contracts must be enforceable and include mutual obligations.
Consideration
- Consideration is defined as something of legal value, essential for contract enforceability.
- Consideration can include promises of future services, cash payments, or actual performance of services.
- An agreement lacking consideration is not enforceable but may be voluntarily performed.
Legal Detriment
- Legal detriment occurs when one party gives up an existing legal right or assumes a new legal duty.
- Each party in a contract typically suffers a legal detriment.
Types of Contracts
- Output contracts: Committing to sell all produced goods to one buyer.
- Requirements contracts: A promise to purchase all needs from a seller, highlighting mutual obligations.
Past Consideration
- Past consideration involves actions completed before a new promise and is generally not valid for contract enforcement.
- Promises based on past actions cannot serve as valid consideration in contracts.
Illusory Promises
- An illusory promise lacks obligation and thus does not meet the consideration requirement.
- Contracts lacking mutuality or clear obligations can be deemed unenforceable.
Modification of Contracts
- Modifications to contracts require new consideration unless unforeseen circumstances justify the change.
- Preexisting duties cannot be used as valid consideration for contract modifications.
Enforceability Issues
- Gratitude without consideration leads to non-enforceable agreements.
- Courts typically do not inquire into equitable values as long as legal obligations are met.
Obligations in Agreements
- Legitimate contractual obligations require mutual benefit and consideration.
- Agreements without legal detriment are often unenforceable, regardless of other factors.
Legal Context
- Promises that fall into categories of gifts or are subject to conditions like past actions are not enforceable.
- The existence of a valid contract is determined by whether both parties have contributed lawful consideration.
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Description
This quiz focuses on the fundamental concepts of contracts as outlined in Chapter 11. It covers key elements necessary for a contract to be valid, as well as the concept of consideration. Test your understanding of these essential legal principles.