|
The fact that the word consideration is used in an agreement means, by itself, that consideration has been given. |
b. False |
|
In contract law, the term consideration refers to the serious thought that underlies a party’s intent to enter into a contract. |
b. False |
|
In contract law, "consideration" refers to the time that a party takes to evaluate a deal. |
b. False |
|
A court will always enforce a promise, despite a lack of consideration. |
b. False |
|
A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable. |
a. True |
|
For consideration to have "legally sufficient value," it must con-sist of goods or money. |
b. False |
|
Performance that creates a legally binding contract may consist of an act. |
a. True |
|
A transaction that lacks a bargained-for exchange lacks an element of consideration. |
a. True |
|
FORBEARANCE is the act of refraining from doing something that one has a legal right to do. |
a. True |
|
To be legally sufficient, consideration must be evidenced by something tangible. |
b. False |
|
Legally sufficient consideration is something of value in the eyes of the law. |
a. True |
|
Legal sufficiency of consideration is the same as adequacy of consideration. |
b. False |
|
Essentially, adequacy of consideration concerns the fairness of a bargain. |
a. True |
|
Parties are usually free to bargain as they wish. |
a. True |
|
A determination of whether consideration exists depends on a comparison of the values of the things exchanged. |
b. False |
|
The element of bargained-for exchange distinguishes contracts from gifts. |
a. True |
|
RESCISSION is the remaking of a contract so as to enrich one party at the expense of the other. |
b. False |
|
18. A promise made in return for an act or event that has not yet taken place is unenforceable. |
b. False |
|
A promise to do what one already has a legal duty to do constitutes legally sufficient consideration. |
b. False |
|
Two parties can mutually agree to rescind a contract unless it is executory. |
b. False |
|
If, during the performance of a contract, extraordinary difficulties arise that were totally unforeseen at the time the contract was formed, a court may allow an exception to the preexisting duty rule. |
a. True |
|
RESCISSION is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made. |
a. True |
|
An obligation is enforceable only if it is made in return for actions or events that have already taken place. |
b. False |
|
A contract that one party retains the exclusive right to cancel at any time is unenforceable. |
a. True |
|
An ILLUSORY PROMISE is a promise that is enforceable without consideration. |
b. False |
|
Even if the terms of a contract express such certainty of performance that the promisor has not definitely promised to do anything, the promise binds the promisor. |
b. False |
|
Risks ordinarily assumed in business constitute consideration for the modification of a contract. |
b. False |
|
A RELEASE is an agreement in which one party gives up the right to pursue a legal claim against another party. |
a. True |
|
A release bars any further recovery beyond the terms stated in the release. |
a. True |
|
. For an accord and satisfaction to occur, the amount of a debt must not be in dispute. |
b. False |
|
A covenant not to sue always bars further recovery. |
b. False |
|
If a debt is unliquidated, an accord and satisfaction cannot take place. |
b. False |
|
In a covenant not to sue, the parties substitute a contractual obligation for some other type of action. |
a. True |
|
Promissory estoppel requires that justice will be better served by the enforcement of the promise. |
a. True |
|
. Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration. |
b. False |
Share This
Flashcard
