Question 1

Barbara, a wealthy widow, promises the pastor of her church that she will donate $20,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $80,000 mortgage.Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead.In this case:

Accepted Answer

The doctrine of promissory estoppel can be applied in this situation because Barbara made a promise to the church and the church relied on that promise to obtain other pledges to pay off the mortgage. It would be unjust to allow Barbara to break her promise and go on her cruise instead. Therefore, the promise may be enforceable under the doctrine of promissory estoppel.

Question 2

Define consideration.

Accepted Answer

The answer of Define consideration....

Question 3

Define legal detriment.

Accepted Answer

The answer of Define legal detriment....

Question 4

Consideration:

Accepted Answer

Consideration may be given to the promisor or to some other person by the promisee or by some other person. This means that consideration can be given by anyone as long as it is something of value that is exchanged between the parties involved in the contract. Therefore, option C is the best choice. Options A, B, and D are incorrect as they do not accurately reflect the concept of consideration.

Question 5

Which of the following will support a contract?

Accepted Answer

Forbearance to do an act, or refraining from doing something that one has the legal right to do, can support a contract if it is bargained for and given in exchange for something else. This is known as a legal detriment, and it creates consideration for the contract. The other options listed do not necessarily provide consideration and may not support a contract.

Question 6

Ken, a research chemist, has been promised a fellowship with a stipend of $10,000 to do research on synthetic fuel oil.Under the terms of the fellowship, Ken is free to use the money as he sees fit.Ken decides to build his own laboratory, so he will not have to rent one.He hires a carpenter who begins working on shelving and cabinets in the laboratory.Then Ken receives a telegram saying the fellowship has been canceled.No reason is given for the cancellation.If Ken sues, will he be able to collect the money from the foundation which promised the fellowship? Explain your answer using legal terminology.

Accepted Answer

The answer of Ken, a research chemist, has been promised...

Question 7

Which of the following statements is most accurate concerning charitable subscription promises?

Accepted Answer

Charitable subscription promises are generally enforceable if there is reliance by the charity. This means that if a charity relies on the promise of a donor to make a donation and incurs expenses or takes action based on that promise, the donor can be held liable to fulfill their promise. The courts have recognized this as a form of contract, and have held that there is a duty to perform based on the promise made. However, without reliance, the promise may be considered unenforceable.

Question 8

Which of the following gratuitous promises is/are enforceable by statute?

Accepted Answer

All of these options are enforceable by statute under the Uniform Commercial Code (UCC) which governs sales of goods.

Question 9

Ron owes Matt an unsecured debt of $3,000.Ron has a discharge of all his unsecured debts by a bankruptcy court.
Can the contract between Matt and Ron be reinstated?

Accepted Answer

The answer of Ron owes Matt an unsecured debt of...

Question 10

Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated.She expects to know for sure how much she will receive within a week or so.In this case:

Accepted Answer

Darla's conditional promise is sufficient consideration unless Darla knows she cannot receive at least $6,000 from her uncle's estate. This means that as long as Darla has a reasonable expectation of receiving the $6,000 from her uncle's estate, her promise to pay Edward $6,000 is a valid contract.

Question 11

Which of the following requires consideration in order to be binding upon the parties?

Accepted Answer

The answer of Which of the following requires consideration in...

Question 12

A purchaser's agreement to buy from a particular seller all the materials of a particular kind he needs is a(n) contract.

Accepted Answer

A requirements contract is an agreement where the buyer agrees to purchase all the goods they need of a particular kind from the seller. This is different from an output contract, where the seller agrees to provide all the goods they produce of a particular kind to the buyer. An exclusive dealing contract is an agreement where the seller agrees to sell all or a significant portion of their products to a particular buyer. An illusory contract is one that lacks consideration and therefore is not enforceable.

Question 13

Define a substituted contract and describe how it affects an agreement.

Accepted Answer

The answer of Define a substituted contract and describe how...

Question 14

Doug obtains an exclusive franchise to sell widgets for the Acme Widget Company.The exclusive franchise covers the entire State of Wisconsin for a period of three years.In this case:

Accepted Answer

Under the Uniform Commercial Code (UCC), when a seller grants an exclusive territory to a buyer or franchisee, there is an implied obligation that the buyer or franchisee must use their best efforts to promote and sell the goods in that territory. This ensures that the seller's grant of exclusivity is valuable and that the seller benefits from the arrangement by having their products actively marketed and sold in the exclusive territory.

Question 15

Andrew agrees to paint Betty's house for $500.Two days after he starts the job, he decides that $500 isn't enough money.He refuses to finish the job unless Betty agrees to pay him $100 more.What law applies to this fact situation?

Accepted Answer

The law of preexisting duty applies to this fact situation. Andrew had already agreed to paint Betty's house for $500, and therefore, he cannot demand additional payment without providing any additional consideration in return. This means that Andrew cannot modify the preexisting contract unilaterally without offering some additional consideration, and Betty is not obligated to pay him the additional $100 requested.

Question 16

William agrees to drill a well up to 200 feet deep for John's rural cabin.The contract price is $3,000.After drilling 100 feet, William strikes solid granite rock.He talks to John and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract.He offers to get a special drill, but says it will cost him more money, so that he will be unable to complete the project for the agreed price.Because John is anxious to have the well, he agrees to pay William an additional $1,000 to complete the job.However, once the well is finished, he changes his mind and now says he will pay only the originally agreed-upon amount.In this case:

Accepted Answer

The parties have entered into a substitute contract which discharges the original contract. This is because they have mutually agreed to a new contract with different terms, namely that John will pay an additional $1,000 for William to complete the job. Therefore, John is obligated to pay the additional $1,000 as per the substitute contract they have entered into.

Question 17

In which of the following situations will a smaller sum be unable to discharge a larger debt?

Accepted Answer

If the smaller sum is paid when the larger sum would ordinarily be due, but the debtor is on the verge of insolvency, the smaller sum may not be sufficient to discharge the larger debt. This is because the larger debt may take priority in terms of repayment during insolvency proceedings. In all other situations, a smaller sum can discharge a larger debt.

Question 18

A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber.Several people are claiming to be entitled to the money.Which of them is eligible?

Accepted Answer

Generally, law enforcement officers and bank employees are not eligible for rewards offered for information leading to arrests in crimes they are professionally involved in. However, an off-duty deputy sheriff from a different county would not be professionally involved and thus could be eligible for the reward.

Question 19

Jason's mother would like him to go to college, so in June he enrolls at State University.He also quits his job and tells his mother his plans to continue taking classes.His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485.Which of the following is true regarding his mother's promise?

Accepted Answer

Jason's mother's promise is unenforceable because Jason had already enrolled in school before she made the promise, meaning there was no new consideration from Jason's side for her promise. Consideration is a core requirement for a contract to be enforceable, and it involves a bargained-for exchange where each party receives something of value. Since Jason's action of enrolling in college occurred before his mother's promise, his action cannot be considered as consideration for her promise to pay for his books.

Question 20

The requirement of legally sufficient consideration:

Accepted Answer

Legally sufficient consideration means that the parties have agreed to an exchange and it imposed a legal detriment upon the promisee or conferred a legal benefit upon the promisor. It does not need to have the same value, nor is it the same as the requirement of adequacy of consideration.

Quiz 12: Consideration