Question 1

D promises G: 'If your house is flooded in a storm, I will pay for its repair'. G's house is flooded in a storm. Is D contractually bound to G?

Accepted Answer

False

Question 2

D promises G: 'If you give me &#163;10, if your house is flooded in a storm, I will pay for its repair'. G's house is flooded in a storm. Is D contractually bound to G?

Accepted Answer

This statement forms a unilateral contract where D has made a promise in exchange for a specific act from G (giving £10). Once G performs the act and the specified condition occurs (house flooding), D is contractually bound to fulfill the promise of paying for the house's repair.

Question 3

'I will give you a piece of bubblegum, since you helped me fix my car yesterday'. This is not a binding promise because&#8230;? Please select all that apply.&#10;A) Past consideration is no consideration.&#10;B) It is not a good bargain.&#10;C) The piece of bubblegum is not economically valuable.&#10;D) The piece of bubblegum is a gift.

Accepted Answer

Past consideration is no consideration, and a gift is not a binding promise.

Question 4

What does 'consideration need not be adequate, but it must be sufficient' mean?&#10;A) The acts and promises must be of value in the eyes of the law, but need not be a 'good bargain'.&#10;B) The acts and promises must be done at the request of the promisor.&#10;C) A reasonable sum must be paid for the goods or services rendered.&#10;D) A particular sum must be paid for the goods or services rendered.

Accepted Answer

This phrase means that for a contract to be valid, the consideration (what is exchanged) must have some legal value, but it doesn't have to match the value of what is received in return. It emphasizes the legal requirement for consideration without insisting on an equal exchange of value.

Question 5

Performance of a duty imposed by law has never been held to be sufficient consideration.

Accepted Answer

Performance of a duty imposed by law can sometimes be considered sufficient consideration if it provides a benefit to the other party or varies from what is required by law, thus creating a valid contract.

Question 6

What is required for a plea of promissory estoppel to succeed?&#10;A) All of the options b, c and d below&#10;B) A clear and unequivocal promise.&#10;C) Reliance by the promisee on that promise.&#10;D) It is inequitable or unconscionable to go back on the promise.

Accepted Answer

Promissory estoppel requires a clear and unequivocal promise, reliance by the promisee on that promise, and circumstances where it would be inequitable or unconscionable to allow the promisor to go back on the promise.

Question 7

What is required for a claim in promissory estoppel to succeed?&#10;A) Promissory estoppel is not a cause of action. Rather, it is a mechanism to stop the representee relying on his rights in contradiction to the representation he made.&#10;B) It is inequitable or unconscionable to go back on a clear and unequivocal promise.&#10;C) Reliance by the promisee on that promise.&#10;D) Both option b) and (c).

Accepted Answer

The answer of What is required for a claim in...

Question 8

The development of promissory estoppel means that consideration is no longer required for contract variation.

Accepted Answer

Promissory estoppel does not eliminate the requirement for consideration in contract variations; it merely provides an exception under which a promise may be enforceable without consideration if the promisor has induced the promisee to significantly alter their position based on the promise.

Deck 6: Consideration and Promissory Estoppel