Question 1

The nonperformance of an accord is called satisfaction by the debtor party.

Accepted Answer

The nonperformance of an accord is called a breach or default, not satisfaction. Satisfaction would imply that the debtor party fulfilled their obligations under the accord.

Question 2

When a seller promises a buyer to sell to he/she all of an item that it produces,this results in:

Accepted Answer

This type of promise is known as an output contract, where the seller agrees to sell all of the goods they produce to the buyer. It is enforceable because it is a specific and definite promise to perform. An illusory contract occurs when the promise made by one party is too vague or uncertain to be enforceable. A requirements contract is when the buyer promises to buy all of their required products from the seller. An accord and satisfaction occurs when there is a dispute between the parties and they reach an agreement to settle the dispute. An enforceable contract with an option to cancel is not applicable in this scenario.

Question 3

Which of the following constitutes legal consideration?

Accepted Answer

Legal consideration requires a promise to do something or refrain from doing something as part of a bargained-for exchange. Choice B states that the promise is based upon a change in duties and payments, which indicates that there is an exchange taking place, making it the only option that constitutes legal consideration. Choices A, C, D, and E do not involve an exchange or consideration that is legally enforceable.

Question 4

A compromise agreement is referred to as an accord.

Accepted Answer

A compromise agreement is indeed referred to as an accord.

Question 5

To meet the contractual requirement,consideration must be:

Accepted Answer

Consideration must be bargained-for and involve a legal detriment to each party, meaning each party must give up something of value or suffer some kind of legal obligation or disadvantage in return for the promise or performance of the other party. This requirement ensures that the contract is not a gift or donation but a mutually beneficial exchange of promises or performances. The other choices may be desirable or relevant in some cases, but they are not necessary for meeting the requirement of consideration.

Question 6

Consideration can best be described as:

Accepted Answer

Consideration is something of value, whether it be money, property, or other goods and services, that is given by one party to another as part of a contractual agreement. It is necessary for a contract to be legally enforceable. B, C, D, and E all may be components of a contract, but they do not fully describe the concept of consideration.

Question 7

An agreement that is lacking consideration:

Accepted Answer

An agreement lacking consideration is not enforceable because consideration is a necessary element for a valid contract. However, the parties can still choose to voluntarily perform the agreement.

Question 8

Which of the following can be considered consideration?

Accepted Answer

The answer of Which of the following can be considered...

Question 9

The doctrine of promissory estoppel holds that most gift promises can be enforced.

Accepted Answer

The doctrine of promissory estoppel applies to promises made in a contractual or quasi-contractual relationship, not to gift promises.

Question 10

The requirement that consideration be bargained-for means that:

Accepted Answer

Consideration in a contract must be bargained-for, meaning that each party must be inducing the other party to give something of value. In other words, the consideration must be the inducement for each party to make the agreement. This requirement is met when each party has given the other party something of value in exchange for what they are receiving. Therefore, option C is the correct answer. Option A is incorrect because consideration does not have to be exchanged simultaneously. Option B is incorrect because the values of the consideration can be greatly different. Option D is incorrect because both parties must agree on the consideration to be given by each party.

Question 11

A promise to refrain from underage drinking in exchange for $10,000:

Accepted Answer

A promise to refrain from illegal activity, such as underage drinking, cannot serve as valid consideration for a contract, making the agreement unenforceable.

Question 12

An illusory promise is:

Accepted Answer

An illusory promise is one where the promisor retains discretion over whether to perform the promise, making it non-binding and insufficient as consideration.

Question 13

For the doctrine of promissory estoppel (detrimental reliance)to apply,there still must be a contract with adequate consideration.

Accepted Answer

The doctrine of promissory estoppel allows for the enforcement of a promise made without consideration. Consideration is not a requirement for the doctrine to apply, but rather the promise must be reasonably relied upon and the reliance must result in a detriment to the promisee. However, if there is a contract with adequate consideration, the doctrine of promissory estoppel may still be used to enforce a promise that modifies the terms of the contract.

Question 14

A promise to deliver merchandise in the future:

Accepted Answer

A promise to deliver merchandise in the future involves a new legal duty and therefore qualifies as consideration. The fact that the merchandise has not yet been delivered or that the person delivering the goods may not necessarily receive a benefit does not affect the existence of consideration. Additionally, payment before delivery is not a necessary condition for consideration to exist.

Question 15

Most courts hold that a liquidated debt cannot be compromised without new consideration.

Accepted Answer

This means that if there is already an agreed-upon and definite amount owed, there must be a new offer of something of value in exchange for the creditor agreeing to accept less than the full amount owed.

Question 16

A party who promises to complete a job according to the terms of a contract signed in the past has not given consideration due to past consideration.

Accepted Answer

Promising to complete a job according to the terms of a contract signed in the past is considered a present consideration, not a past consideration. Past consideration refers to something that was done in the past and is used as a basis for a new promise or contract. In the scenario given, there is no mention of any past action being considered as consideration for the new promise to complete the job. Therefore, the statement is false.

Question 17

Which of the following most likely constitutes legal consideration?

Accepted Answer

A promise to buy all that the promisor needs of an item with specifying a minimum quantity can constitute legal consideration as it involves a commitment to purchase, which can be enforceable if the terms are clear.

Question 18

"Legal detriment" in the context of consideration means:

Accepted Answer

Legal detriment in the context of consideration refers to giving up an existing legal right or taking on a new legal duty. This is necessary for a contract to be valid and enforceable, as both parties must give up something of value in order for there to be mutual obligation. Option D and E are not relevant to the concept of legal detriment, and option B is not a comprehensive enough answer as it only includes taking on a new legal duty, whereas giving up an existing legal right is also considered legal detriment.

Question 19

Promissory estoppel is an equitable doctrine that prevents the withdrawal of a promise by the promissor if it will adversely affect a promissee who has changed his or her position in justifiable reliance on the promise.

Accepted Answer

This statement accurately describes the legal concept of promissory estoppel.

Question 20

In a two-party contract,which is true about consideration?

Accepted Answer

Consideration refers to the exchange of benefits or legal detriments between the parties in a contract. In a two-party contract, each party must either receive a benefit or suffer a legal detriment in order for there to be valid consideration. This means that Option A (Only one party must suffer a legal detriment) and Option B (Both parties must receive a benefit) are not true. Option C (Each party must suffer a legal detriment) is also not entirely correct, as suffering a legal detriment is not the only way to provide consideration. Therefore, the best choice is Option D (Each party must either receive a benefit or suffer a legal detriment).

Quiz 11: Consideration and Promissory Estoppel