Question 1

Which of the following is supported by consideration?

Accepted Answer

A)  written contract
B)  gift promise
C)  illusory promise
D)  preexisting duty

Question 2

Why does an illusory contract lack consideration?

Accepted Answer

A)  because the consideration promised is unlawful and therefore void
B)  because the person promises to perform an act or do something he or she is already under an obligation to do
C)  because one or both parties can choose not to perform their contractual obligations
D)  because the compensation paid is for work done in the past

Question 3

An accord is enforceable even though no new consideration is given.

Accepted Answer

A) True 
 B)False

Question 4

James's attempt to make a new contract is void because it lacks consideration under the ________ concept.

Accepted Answer

A)  illegal consideration
B)  gift promise
C)  past consideration
D)  preexisting duty

Question 5

In the above scenario,to avoid legal nuisance,Frasier decides to compromise with James.He asks James to fix a tap in the barn for $250,and modify the current contract to include the tap in the barn.James agrees to this,and does as asked while Frasier remakes the contract.Which of the following would this kind of settlement be referred to as?

Accepted Answer

A)  duress
B)  past consideration
C)  accord
D)  mirror image rule acceptance

Question 6

An accord is a compromise reached between two parties to settle a claim.

Accepted Answer

A) True 
 B)False

Question 7

A gift promise is enforceable if the promisor withdraws from his promise.

Accepted Answer

A) True 
 B)False

Question 8

To be enforceable,a contract must be supported by consideration.

Accepted Answer

A) True 
 B)False

Question 9

Corey in a desperate need to get to the airport decides to take his neighbor Tanner's help.Tanner agrees to help and drives Corey to the airport.Upon arrival at the airport,Corey promises to pay Tanner $25 for the gas fill.Corey's promise falls under which of the following contracts?

Accepted Answer

A)  illegal consideration
B)  illusory promise
C)  preexisting duty
D)  past consideration

Question 10

A(n) ________ is a contract in which a buyer agrees to purchase all of its requirements for an item from one seller.

Accepted Answer

A)  option contract
B)  requirements contract
C)  best-efforts contract
D)  output contract

Question 11

Which of the following condition is required for the two companies to enter into a legally enforceable contract?

Accepted Answer

A)  The considerations must be beneficial to both parties involved.
B)  The considerations must be detrimental to both parties involved.
C)  The considerations must be mentioned in writing in the contract.
D)  The considerations must be bargained-for exchange of a service or product.

Question 12

In an output contract,the buyer agrees to make all of its purchases from one buyer.

Accepted Answer

A) True 
 B)False

Question 13

To meet contractual legality,considerations must be ________.

Accepted Answer

A)  beneficial to both parties involved
B)  detrimental to both parties involved
C)  mentioned in writing in the contract
D)  bargained-for exchange of promise for performance

Question 14

If a contract that was lacking in consideration is performed by the parties,the parties cannot subsequently assert lack of consideration to undo the performed contract.

Accepted Answer

A) True 
 B)False

Question 15

A gift promise requires the promisee to provide consideration.

Accepted Answer

A) True 
 B)False

Question 16

Imposition of the best-efforts duty provides sufficient consideration to make a contract enforceable.

Accepted Answer

A) True 
 B)False

Question 17

Promissory estoppels can be invoked for cases that include consideration.

Accepted Answer

A) True 
 B)False

Question 18

Preexisting duty promise is unenforceable because of the introduction of a new consideration.

Accepted Answer

A) True 
 B)False

Question 19

A requirements contract is unenforceable due to lack of consideration.

Accepted Answer

A) True 
 B)False

Question 20

The preexisting rule allows for midstream changes to be enforceable in a contract.

Accepted Answer

A) True 
 B)False

Exam 11: Consideration and Promissory Estoppel

Preexisting duty promise is unenforceable because of the introduction of a new consideration.

Correct Answer
verified

Correct Answer
verified

An accord is a compromise reached between two parties to settle a claim.

Correct Answer
verified

If a contract that was lacking in consideration is performed by the parties,the parties cannot subsequently assert lack of consideration to undo the performed contract.

Correct Answer
verified

An accord is enforceable even though no new consideration is given.

Correct Answer
verified

A(n) ________ is a contract in which a buyer agrees to purchase all of its requirements for an item from one seller.

Correct Answer
verified

A gift promise requires the promisee to provide consideration.

Correct Answer
verified

A requirements contract is unenforceable due to lack of consideration.

Correct Answer
verified

To be enforceable,a contract must be supported by consideration.

Correct Answer
verified

Imposition of the best-efforts duty provides sufficient consideration to make a contract enforceable.

Correct Answer
verified

James's attempt to make a new contract is void because it lacks consideration under the ________ concept.

Correct Answer
verified

A gift promise is enforceable if the promisor withdraws from his promise.

Correct Answer
verified

The preexisting rule allows for midstream changes to be enforceable in a contract.

Correct Answer
verified

To meet contractual legality,considerations must be ________.

Correct Answer
verified

In an output contract,the buyer agrees to make all of its purchases from one buyer.

Correct Answer
verified

Why does an illusory contract lack consideration?

Correct Answer
verified

Which of the following is supported by consideration?

Correct Answer
verified

Which of the following condition is required for the two companies to enter into a legally enforceable contract?

Correct Answer
verified

Promissory estoppels can be invoked for cases that include consideration.

Correct Answer
verified

Corey in a desperate need to get to the airport decides to take his neighbor Tanner's help.Tanner agrees to help and drives Corey to the airport.Upon arrival at the airport,Corey promises to pay Tanner $25 for the gas fill.Corey's promise falls under which of the following contracts?

Correct Answer
verified

Exam 11: Consideration and Promissory Estoppel

Preexisting duty promise is unenforceable because of the introduction of a new consideration.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An accord is a compromise reached between two parties to settle a claim.

Correct AnswerverifiedShow Answer

If a contract that was lacking in consideration is performed by the parties,the parties cannot subsequently assert lack of consideration to undo the performed contract.

Correct AnswerverifiedShow Answer

An accord is enforceable even though no new consideration is given.

Correct AnswerverifiedShow Answer

A(n) ________ is a contract in which a buyer agrees to purchase all of its requirements for an item from one seller.

Correct AnswerverifiedShow Answer

A gift promise requires the promisee to provide consideration.

Correct AnswerverifiedShow Answer

A requirements contract is unenforceable due to lack of consideration.

Correct AnswerverifiedShow Answer

To be enforceable,a contract must be supported by consideration.

Correct AnswerverifiedShow Answer

Imposition of the best-efforts duty provides sufficient consideration to make a contract enforceable.

Correct AnswerverifiedShow Answer

James's attempt to make a new contract is void because it lacks consideration under the ________ concept.

Correct AnswerverifiedShow Answer

A gift promise is enforceable if the promisor withdraws from his promise.

Correct AnswerverifiedShow Answer

The preexisting rule allows for midstream changes to be enforceable in a contract.

Correct AnswerverifiedShow Answer

To meet contractual legality,considerations must be ________.

Correct AnswerverifiedShow Answer

In an output contract,the buyer agrees to make all of its purchases from one buyer.

Correct AnswerverifiedShow Answer

Why does an illusory contract lack consideration?

Correct AnswerverifiedShow Answer

Which of the following is supported by consideration?

Correct AnswerverifiedShow Answer

Which of the following condition is required for the two companies to enter into a legally enforceable contract?

Correct AnswerverifiedShow Answer

Promissory estoppels can be invoked for cases that include consideration.

Correct AnswerverifiedShow Answer

Corey in a desperate need to get to the airport decides to take his neighbor Tanner's help.Tanner agrees to help and drives Corey to the airport.Upon arrival at the airport,Corey promises to pay Tanner $25 for the gas fill.Corey's promise falls under which of the following contracts?

Correct AnswerverifiedShow Answer

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