If Peter and Nash are in disagreement as to the exact amount of money that Peter owes Nash, then they may choose to form a new agreement at a set amount. If they both perform the new agreement, their conduct would be an example of:
a. a rescission.
b. a contract modification.
c. an accord and satisfaction.
d. a preexisting duty.
Answer: C
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Business Law Chapter 12
- Blakely has a cause to sue Carly in a tort action, but agrees not to sue her if Carly will pay for the damage. If Carly fails to pay, Blakely can bring an action against her for breach of contract. This is
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- Gayla questions whether there is consideration for her contract with Julius. Consideration has two elements- there must be a bargained-for exchange and the value of whatever is exchanged must be.
- T or F: The doctrine of promissory estoppel requires a clear and definite promise.
- T or F: Consideration is the value given in return for a promise.
- T or F: Only a liquidated debt can serve as consideration for an accord and satisfactions.
- T or F: A covenant not to sue always bars further recovery.
- T or F: If, in a contract, and promisor does not definitely promise to do anything, the promise is illusory.
- T or F: A promise has no legal value as consideration.
- T or F: Rescission is the unmaking of a contract and the parties return to their pre contract positions.
- T or F: Past consideration is consideration.
- T or F: A promise to do what one already has a legal duty to do is not legal sufficient consideration.
- T or F: Inadequate consideration may indicate fraud, duress, or undue influence.
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- Upon graduating from college, Catherine announced her plans to enter law school the following fall and to marry Dwayne in December. Catherine's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out of school. He called Catherine and promised her $10,000 if she postponed her wedding until after completion of her first year of law school. Catherine agreed and postponed the wedding for a year. Catherine successfully completed her first year of law school, but soon thereafter, Catherine's father died. The administrator of her father's estate claimed she was not entitled to the $10,000 because there was no consideration for her father's promise. If Catherine sues the estate, she will probably be:
- An agreement to pay a lesser amount to settle an unliquidated debt is:
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- All of the following statements are true regarding consideration EXCEPT:
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