Question 1

A promise to steal a valuable piece of art is valid consideration to support a contract.

Accepted Answer

A) True 
 B)False  False

Question 2

When one refrains or promises to refrain from doing something, this conduct is known as .

Accepted Answer

A)  duress
B)  forbearance
C)  negligence
D)  disaffirmationE) A) and C)
F) B) and D)

Question 3

Which of the following constitutes valid consideration?

Accepted Answer

A)  A promise to refrain from doing an illegal act
B)  Past performance
C)  A promise to refrain from doing an act that can be lawfully done
D)  A promise to do what one is already obligated to doE) C) and D)
F) B) and D)

Question 4

As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule?

Accepted Answer

A)  A non-charitable enterprise financed by the subscriptions of individuals
B)  A promise to refrain from doing what one has no right to do
C)  An act performed prior to the promise made by the promisor
D)  An obligation of record such as a judgmentE) A) and D)
F) A) and C)

Question 5

Only financial items can constitute consideration.

Accepted Answer

A) True 
 B)False

Question 6

Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt.

Accepted Answer

A) True 
 B)False

Question 7

Blake has subscribed to a local charitable association where he needs to make a monthly payment of $100. However, a few months later, Blake stops paying this amount. Which of the following exceptions to the requirement of consideration will enforce that Blake pays the amount?

Accepted Answer

A)  Composition of creditors
B)  Voluntary subscriptions
C)  Forbearance to cancel monthly subscriptions
D)  Modification of sales contractsE) A) and D)
F) A) and C)

Question 8

Consideration distinguishes mere agreements from legally enforceable obligations. ​

Accepted Answer

A) True 
 B)False  True

Question 9

Which of the following is true of the doctrine of promissory estoppel? ​

Accepted Answer

A)  It requires that promises made should be supported by consideration.
B)  It permits the promisor to claim lack of consideration when the promisee acts in reliance on his promise.
C)  It requires the promisor to reasonably expect the promise to induce action by the promisee.
D)  It holds enforcement to be proper if the promisee would not be harmed if the promise were not enforced.E) B) and C)
F) None of the above

Question 10

If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid.

Accepted Answer

A) True 
 B)False

Question 11

When parties to a contract mutually agree to cancel an old contract and replace it with a new one, which of the following is true?

Accepted Answer

A)  To be enforceable, there must be added features in the new contract benefiting both parties.
B)  One party's past performance under the original contract is sufficient consideration for the new contract.
C)  The new contract is void.
D)  Neither party has a right to make changes to the original contract.E) A) and D)
F) B) and D)

Question 12

Mark owes $2000 each to his business partners, Ryan, Bryan, and Clark. Since Mark is facing financial difficulties, his business partners agree to accept a total amount of $4800 from Mark as a cancellation of the unpaid balance due to them. This type of an agreement is known as a .

Accepted Answer

A)  composition of creditors
B)  writ of certiorari
C)  forbearance
D)  promissory estoppelE) A) and C)
F) A) and B)

Question 13

As a general rule, the adequacy of the consideration is irrelevant because the law allows bargains.

Accepted Answer

A) True 
 B)False  True

Question 14

Performing or promising to perform what one is already obligated to do is a valid consideration.

Accepted Answer

A) True 
 B)False

Question 15

For a promise to constitute consideration, the promise must not impose an obligation on the person making it.

Accepted Answer

A) True 
 B)False

Question 16

Consideration is not necessary to support an obligation of record.

Accepted Answer

A) True 
 B)False

Question 17

The Uniform Commercial Code states that when a contract for the sale of goods is modified by agreement of the parties, consideration is necessary to make it enforceable.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following best describes the term "consideration"? ​

Accepted Answer

A)  It refers to the record of a case sent for review to a higher court.
B)  It indicates what the promisor demands and receives as the price for a promise.
C)  It signifies a promissory note given by the promisor as a token of the transaction.
D)  It refers to the promisor refraining from meeting a promise.E) A) and B)
F) All of the above

Question 19

When charitable enterprises are financed by voluntary subscriptions of many people, the promise of each person is generally not held to be enforceable.

Accepted Answer

A) True 
 B)False

Question 20

As a general rule, a promise must be supported by consideration. Describe any two exceptions to this rule. ​

Accepted Answer

Two exceptions to the requirement of con...

Exam 8: Consideration

A promise to steal a valuable piece of art is valid consideration to support a contract.

Correct AnswerverifiedFalse

When one refrains or promises to refrain from doing something, this conduct is known as .

Correct AnswerverifiedShow Answer

Which of the following constitutes valid consideration?

Correct AnswerverifiedShow Answer

As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule?

Correct AnswerverifiedShow Answer

Only financial items can constitute consideration.

Correct AnswerverifiedShow Answer

Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt.

Correct AnswerverifiedShow Answer

Blake has subscribed to a local charitable association where he needs to make a monthly payment of $100. However, a few months later, Blake stops paying this amount. Which of the following exceptions to the requirement of consideration will enforce that Blake pays the amount?

Correct AnswerverifiedShow Answer

Consideration distinguishes mere agreements from legally enforceable obligations. ​

Correct AnswerverifiedTrue

Which of the following is true of the doctrine of promissory estoppel? ​

Correct AnswerverifiedShow Answer

If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid.

Correct AnswerverifiedShow Answer

When parties to a contract mutually agree to cancel an old contract and replace it with a new one, which of the following is true?

Correct AnswerverifiedShow Answer

Mark owes $2000 each to his business partners, Ryan, Bryan, and Clark. Since Mark is facing financial difficulties, his business partners agree to accept a total amount of $4800 from Mark as a cancellation of the unpaid balance due to them. This type of an agreement is known as a .

Correct AnswerverifiedShow Answer

As a general rule, the adequacy of the consideration is irrelevant because the law allows bargains.

Correct AnswerverifiedTrue

Performing or promising to perform what one is already obligated to do is a valid consideration.

Correct AnswerverifiedShow Answer

For a promise to constitute consideration, the promise must not impose an obligation on the person making it.

Correct AnswerverifiedShow Answer

Consideration is not necessary to support an obligation of record.

Correct AnswerverifiedShow Answer

The Uniform Commercial Code states that when a contract for the sale of goods is modified by agreement of the parties, consideration is necessary to make it enforceable.

Correct AnswerverifiedShow Answer

Which of the following best describes the term "consideration"? ​

Correct AnswerverifiedShow Answer

When charitable enterprises are financed by voluntary subscriptions of many people, the promise of each person is generally not held to be enforceable.

Correct AnswerverifiedShow Answer

As a general rule, a promise must be supported by consideration. Describe any two exceptions to this rule. ​

Correct AnswerverifiedTwo exceptions to the requirement of con...View AnswerShow Answer

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Consideration distinguishes mere agreements from legally enforceable obligations.

Correct Answer
verified
True

Which of the following is true of the doctrine of promissory estoppel?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following best describes the term "consideration"?

Correct Answer
verified

Correct Answer
verified

As a general rule, a promise must be supported by consideration. Describe any two exceptions to this rule.

Correct Answer
verified
Two exceptions to the requirement of con...
View Answer