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Questions and Answers
What is Bob's promise regarding house checks?
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:
Smith's promise to pay Joe an increased amount is enforceable because:
- This is a valid settlement of a liquidated debt.
- This is an unforeseen circumstance. (correct)
- This is a novation.
- This is a Uniform Commercial Code modification.
- This is a preexisting duty.
Ralph's agreement not to sue after receiving $10,000 represents what kind of debt?
Ralph's agreement not to sue after receiving $10,000 represents what kind of debt?
- A liquidated debt.
- B and C only.
- An accord and satisfaction.
- An unliquidated debt. (correct)
- A and C only.
If Mary changes her mind about giving her car, the court will most likely:
If Mary changes her mind about giving her car, the court will most likely:
In order for a contract to be valid, it must contain what?
In order for a contract to be valid, it must contain what?
Consideration can best be described as:
Consideration can best be described as:
An agreement that is lacking consideration:
An agreement that is lacking consideration:
Which of the following can be considered consideration?
Which of the following can be considered consideration?
In a two-party contract, which is true about consideration?
In a two-party contract, which is true about consideration?
Legal detriment in the context of consideration means:
Legal detriment in the context of consideration means:
To meet the contractual requirement, consideration must be:
To meet the contractual requirement, consideration must be:
A promise to deliver merchandise in the future:
A promise to deliver merchandise in the future:
The requirement that consideration be bargained-for means that:
The requirement that consideration be bargained-for means that:
A promise to refrain from underage drinking in exchange for $10,000:
A promise to refrain from underage drinking in exchange for $10,000:
An illusory promise is:
An illusory promise is:
When a seller promises a buyer to sell all of an item that it produces, this results in:
When a seller promises a buyer to sell all of an item that it produces, this results in:
Which of the following constitutes legal consideration?
Which of the following constitutes legal consideration?
Which of the following most likely constitutes legal consideration?
Which of the following most likely constitutes legal consideration?
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:
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:
An agreement to settle an earlier contract that was in dispute is:
An agreement to settle an earlier contract that was in dispute is:
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:
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:
Jean sold her car undervalued and wants to return $500 to the purchaser to get her car back. The likely outcome is:
Jean sold her car undervalued and wants to return $500 to the purchaser to get her car back. The likely outcome is:
Seasonal Selections, Inc. enters a contract to purchase all balsam fir tree boughs it needs. This contract is:
Seasonal Selections, Inc. enters a contract to purchase all balsam fir tree boughs it needs. This contract is:
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:
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:
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?
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?
Lisa enters into a contract for groceries 'as she determines appropriate in the future'. This is an example of:
Lisa enters into a contract for groceries 'as she determines appropriate in the future'. This is an example of:
Worldwide Motor Company enters a contract with Good Tire Co. allowing cancellation at any time. This contract is:
Worldwide Motor Company enters a contract with Good Tire Co. allowing cancellation at any time. This contract is:
Frieda offered a security officer $100 to resolve a problem. Is there sufficient consideration?
Frieda offered a security officer $100 to resolve a problem. Is there sufficient consideration?
Caterer agreed to cater a wedding for $12 per plate but then requested $16. Which is true?
Caterer agreed to cater a wedding for $12 per plate but then requested $16. Which is true?
Ricky, a basketball player, demands an additional $5,000 per game. Most likely:
Ricky, a basketball player, demands an additional $5,000 per game. Most likely:
Cheryl promised a $4,000 bonus to her builder after the job is done. What is most likely the result?
Cheryl promised a $4,000 bonus to her builder after the job is done. What is most likely the result?
Frank's boss promises him a $1,000 bonus for past work. Is the company obligated to pay?
Frank's boss promises him a $1,000 bonus for past work. Is the company obligated to pay?
In which of the following situations have both parties given consideration to support a contract?
In which of the following situations have both parties given consideration to support a contract?
In which of the following situations is there adequate consideration on the part of the promisor to support enforcement of a contract?
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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