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

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

a) a covenant not to sue
b) an accord and satisfaction
c) an unenforceable contract
d) a release

Answer: A

Owen hires Paula under a contract that reserves to Owen the right to cancel the contract on thirty days notice at any time after Paula begins work. This promise is

Owen hires Paula under a contract that reserves to Owen the right to cancel the contract on thirty days notice at any time after Paula begins work. This promise is

a) enforceable
b) illusory
c) imaginary
d) unforeseen

Answer: A

Mikayla promises to pay Lauren to work for her. Lauren agrees and quits her job, but Mikayla does not hire her. Mikayla is liable to Lauren based on

Mikayla promises to pay Lauren to work for her. Lauren agrees and quits her job, but Mikayla does not hire her. Mikayla is liable to Lauren based on

a) the concept of accord and satisfaction
b) the doctrine of promissory estoppel
c) the preexisting duty rule
d) the principle of rescission

Answer: B

Sawyer causes an accident in which Reese is injured. Reese accept Sawyers offer of $5,000 to release Sawyer from further liability. Later, Reese learns that his injuries are more serious than he realized. The release will

Sawyer causes an accident in which Reese is injured. Reese accept Sawyers offer of $5,000 to release Sawyer from further liability. Later, Reese learns that his injuries are more serious than he realized. The release will

a) bar further recovery from Sawyer
b) not bar further recovery from Sawyer if Sawyer is insured
c) not bar further recovery from Sawyer if Reese is insured
d) not bar further recovery from Sawyer under any circumstances

Answer: A

Idle Contractor corporation begins constructing a building for Haute Apartments, Inc. In midproject, Idle asks for $150,000 more, claiming an increase in ordinary business expenses. Haute agrees. This agreement is

Idle Contractor corporation begins constructing a building for Haute Apartments, Inc. In midproject, Idle asks for $150,000 more, claiming an increase in ordinary business expenses. Haute agrees. This agreement is

a) enforceable as an accord and satisfaction
b) enforceable beacause of unforeseen difficulties
c) unenforceable as an illusory promise
d) unenforceable due to the preexisting duty role

Answer: D

Delite Pastires, Inc., contracts with Elron to deliver its products. Later, the parties decide to cancel their contract. They

Delite Pastires, Inc., contracts with Elron to deliver its products. Later, the parties decide to cancel their contract. They

a) may rescind their entire contract
b) may rescind their contact to the extent that it is executory
c) must perform their entire contract
d) must perform the part of their contract that is executory

Answer: B

Hillcrest Office Company promises to pay Gerard $1,000 to repair the roof on Hillcrest's building Gerard fixes the roof. The act of fixing the roof

Hillcrest Office Company promises to pay Gerard $1,000 to repair the roof on Hillcrest's building Gerard fixes the roof. The act of fixing the roof

a) imposes a moral obligation on Hillcrest to pay Gerard
b) imposes no obligation on Hillcrest unless it is satisfied with the job
c) is not sufficient consideration because it is not goods or money
d) is the consideration that creates Hiillcrest's obligation to pay Gerard

Answer: D

Jay is seeking to avoid performing a promise to pay Karen $150. Jay is claiming a lack of consideration on Karen's part. Jay will win if he can show that

Jay is seeking to avoid performing a promise to pay Karen $150. Jay is claiming a lack of consideration on Karen's part. Jay will win if he can show that

a) Before Jay's promise, Karen had already performed the requested act
b) Karen's only claim of consideration was the relinquishment of a legal right
c) Karen's asserted consideration is only worth $50
d) The consideration to be performed by Karen will be perofrmed by a third party

Answer: A

Dave offers to buy a book owned by Lee for $40. Lee accepts and hands the book to Dave. The transfer and delivery of the book constitute performance. Is this performance consideration for Daves promise?

Dave offers to buy a book owned by Lee for $40. Lee accepts and hands the book to Dave. The transfer and delivery of the book constitute performance. Is this performance consideration for Daves promise?

a) No, because Lee already had a duty to hand the book to Dave
b) No, because performance never constitutes consideration
c) Yes, Because Dave sought it in exchange for his promise, and Lee gave it in exchange for that promise
d) Yes, because performance always constitutes performances

Answer: C

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.

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.

a) economically fair
b) grossly inadequate
c) legally sufficient
d) reasonable reliable

Answer: C

T or F: The doctrine of promissory estoppel requires a clear and definite promise.

T or F: The doctrine of promissory estoppel requires a clear and definite promise.

Answer: True

T or F: Consideration is the value given in return for a promise.

T or F: Consideration is the value given in return for a promise.

Answer: True

T or F: Only a liquidated debt can serve as consideration for an accord and satisfactions.

T or F: Only a liquidated debt can serve as consideration for an accord and satisfactions.

Answer: False

T or F: A covenant not to sue always bars further recovery.

T or F: A covenant not to sue always bars further recovery.

Answer: False

T or F: If, in a contract, and promisor does not definitely promise to do anything, the promise is illusory.

T or F: If, in a contract, and promisor does not definitely promise to do anything, the promise is illusory.

Answer: True

T or F: A promise has no legal value as consideration.

T or F: A promise has no legal value as consideration.

Answer: False

T or F: Rescission is the unmaking of a contract and the parties return to their pre contract positions.

T or F: Rescission is the unmaking of a contract and the parties return to their pre contract positions.

Answer: True

T or F: Past consideration is consideration.

T or F: Past consideration is consideration.

Answer: False

T or F: A promise to do what one already has a legal duty to do is not legal sufficient consideration.

T or F: A promise to do what one already has a legal duty to do is not legal sufficient consideration.

Answer: True

T or F: Inadequate consideration may indicate fraud, duress, or undue influence.

T or F: Inadequate consideration may indicate fraud, duress, or undue influence.

Answer: True