Question 1

Yvon asks Zack,"Do you want to buy one of my fishing rods?" This is

Accepted Answer

The answer of Yvon asks Zack,"Do you want to buy...

Question 2

First State Bank offers to lend money to Greco at 15 percent interest.Before Greco accepts,a statute is enacted prohibiting loans at interest rates greater than 12 percent.Greco and the bank have

Accepted Answer

The statute prohibiting loans at interest rates greater than 12 percent overrides any previous agreements between Greco and the bank. Therefore, there is no contract for a loan between them.

Question 3

Tomato Farms (TF)offers to sell Unified Grocers,Inc. ,a boxcar load of tomatoes.The offer is sent via overnight delivery because an acceptance is re?quired urgently.It would be most reasonable for Unified to accept via

Accepted Answer

The answer of Tomato Farms (TF)offers to sell Unified Grocers,Inc....

Question 4

Fact Pattern 8-2
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the considera?tion for their contract was inadequate.
-Refer to Fact Pattern 8-2.A court is most likely to evaluate the adequacy of consid?era?tion if

Accepted Answer

The court is most likely to evaluate the adequacy of consideration if there is a gross disparity in the value of the consideration exchanged. In this case, Brad is claiming that the consideration for their contract was inadequate, indicating that there may be a gross disparity in the value of the consideration exchanged.

Question 5

Corner Convenience Store (CCS)takes out a full-page ad in a local news?paper and runs a thirty-second commercial on a local television station,offering a reward for information lead?ing to the apprehension of the per?son who robbed the store.CCS could normally terminate the offer by

Accepted Answer

CCS can terminate the offer by using the same method of communication they used to make the offer, which is running a full-page ad in the paper and a thirty-second commercial on the local station.

Question 6

Sugar promises to perform,for a price,alteration services in affiliation with Togs 'n Things,a clothing store.To support a contract,the consid?eration ex?changed by the parties must be

Accepted Answer

The consideration exchanged by the parties must be legally sufficient, meaning it must have some value and be something that can be legally exchanged. Adequacy, equality, and wise pricing are not necessary for consideration to be valid.

Question 7

Fact Pattern 8-1 
Dave's Hobby Town and Eva's Yarn Shoppe are adjacent stores with adjoining parking lots.Dave offers Eva a discount on purchases from Dave's store if Eva will not tow the cars of Dave's customers who park in Eva's lot.
-Refer to Fact Pattern 8-1.Dave's discount is legally sufficient consid?eration

Accepted Answer

Dave's promise to offer a discount on purchases from his store qualifies as legally sufficient consideration because it is a promise of something of value. The fact that it is conditional on Eva not towing the cars of Dave's customers does not invalidate the consideration being offered.

Question 8

Jane offers to sell Kyle three desks for his Lights & Lamps Company ad?ministrative office.Kyle sends a rejec?tion first,then changes his mind and sends an acceptance.Whether they have a contract is determined by

Accepted Answer

The answer of Jane offers to sell Kyle three desks...

Question 9

Eastside Warehouse offers to sell a forklift to Forest Lumber Company,but it is stolen before Forest ac?cepts.Eastside must obtain

Accepted Answer

The theft of the forklift terminates the offer, as it is no longer possible for Eastside to fulfill the terms of the offer. Therefore, Eastside is not obligated to provide Forest Lumber Company with a forklift.

Question 10

Royal Properties,Inc. ,mails a flyer to hundreds of firms,advertising a building for sale.Super Soup Brewing Company responds by saying,"We accept your offer." Between Royal and Super,there is

Accepted Answer

The response of Super Soup Brewing Company is not a clear acceptance of an offer made by Royal Properties, Inc. The flyer was an advertisement and not necessarily an offer to sell the building. Therefore, there is no contract formed between the two parties at this point.

Question 11

Quality Steel Corporation files a suit against Rite Tool Company,claim?ing that the consideration for their contract is inadequate.The court will most likely not examine the adequacy of the considera?tion if

Accepted Answer

The answer of Quality Steel Corporation files a suit against...

Question 12

Geof offers to sell his Honda for $10,000 to Ilsa,who says,"I'll pay no more than $5,000." Geof says,"Forget it.I changed my mind." Geof's offer was terminated by

Accepted Answer

The answer of Geof offers to sell his Honda for...

Question 13

Baked Stuff Company agrees to supply Comida Café with all the corn chips that it re?quires for a year.A sudden blight caused by an organism hitherto unknown in the United States results in a shortage of corn,and the price rises sharply.Baked Stuff asks Comida to pay a higher price for the chips.This request is

Accepted Answer

The answer of Baked Stuff Company agrees to supply Comida...

Question 14

Marco promises to pay his assistant Naomi $10,000 in consideration of the ser?vices she has provided over the years.Marco is

Accepted Answer

Consideration must be something of value exchanged between parties at the time of the agreement. Since Naomi's services were provided in the past, there is no valid consideration to support Marco's promise, making it unenforceable.

Question 15

Fact Pattern 8-2
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the considera?tion for their contract was inadequate.
-Refer to Fact Pattern 8-2."Adequacy" of consideration refers to

Accepted Answer

Adequacy of consideration refers to "how much" consideration is given, focusing on the fairness or equivalence of the exchange in a contract.

Question 16

Craig decides to sell his Double-C Ranch in an auction "without reserve." If Craig changes his mind at the auction,he can withdraw his property

Accepted Answer

"Without reserve" means that there is no minimum price set for the property and the highest bidder will be the buyer. In this type of auction, the seller cannot withdraw the property once bidding has started. Therefore, the answer is C - under no circumstances.

Question 17

Ritzy Property,Inc. ,offers to sell a warehouse to Self-Storage Company.Self-Storage says that it will pay Ritzy $100 to hold the offer open for three business days.This

Accepted Answer

Self-Storage is offering to pay for an option to hold the offer open for three days. If Ritzy accepts, the offer becomes irrevocable for three days. This does not change the terms of the original offer, so choices A, C, and D are incorrect.

Question 18

Quix Fix-It,Inc. ,offers Polly a job as a plumber.No time for acceptance is specified in the offer.The offer will terminate

Accepted Answer

When there is no specified time frame for acceptance in a job offer, it is considered open for a reasonable period of time. This means that the offer will expire after a period of time that is deemed reasonable under the circumstances, such as the nature of the job and the industry standards. Therefore, option A is the best choice.

Question 19

Callie owns two trucks.She offers to sell the Dodge for $20,000 to Evan,who accepts.She offers to sell the Ford for $20,000 to Gwen,who says,"Too much." Callie's offer to Gwen was terminated by

Accepted Answer

Callie's offer to sell the Ford to Gwen was terminated by Gwen's rejection of the offer. Evan's acceptance of the offer to buy the Dodge does not affect Gwen's ability to reject the offer for the Ford.

Question 20

Fact Pattern 8-1 
Dave's Hobby Town and Eva's Yarn Shoppe are adjacent stores with adjoining parking lots.Dave offers Eva a discount on purchases from Dave's store if Eva will not tow the cars of Dave's customers who park in Eva's lot.
-Refer to Fact Pattern 8-1.Eva's forbearance from towing is legally suffi?cient consid?eration

Accepted Answer

Eva's promise not to tow Dave's customers in exchange for a discount on purchases from Dave's store is a bargained-for exchange of something of value, which is legally sufficient consideration. It does not matter if Dave's customers park in Eva's lot or if Eva's lot is full. Therefore, option A is the best choice.

Quiz 8: Agreement and Consideration