Question 1

Why are "disguised gift" promises involving nominal consideration nonbinding because of the absence of consideration? Explain with one example.

Accepted Answer

The answer of Why are "disguised gift" promises involving nominal...

Question 2

A promise for a charitable purpose will be enforced,despite the absence of consideration,when the promisee:

Accepted Answer

Promises to make gifts for charitable or educational purposes are often enforced,despite the absence of consideration,when the institution or organization to which the promise was made has acted in reliance on the promised gift.This result is usually justified on the basis of either promissory estoppel or public policy.

Question 3

In general,settlements of liquidated debts are not binding due to the absence of consideration,while settlements of unliquidated debts are a binding accord and satisfaction.As a matter of technical consideration law,what justifies this distinction?

Accepted Answer

The answer of In general,settlements of liquidated debts are not...

Question 4

As discussed in the case in the text,McLellan v.Charly,promissory estoppel:

Accepted Answer

Promissory estoppel requires (1)a promise that the promisor should reasonably expect to induce reliance, (2)reliance on the promise by the promisee,and (3)injustice to the promisee as a result of that reliance.Promissory estoppel is now widely used as a consideration substitute,not only in donative promise cases but also in cases involving commercial promises contemplating a bargained-for exchange.

Question 5

Ben,an accountant in Los Angeles,interviewed with Matt,a CPA in San Francisco.At the end of his interview,Matt,the personnel manager,told Ben: "I look forward to working with you.Please let me know if I can help you prepare for your move to San Francisco." Ben returned to Los Angeles,quit his job,gave a 30-day notice to his landlord,rented an apartment in San Francisco,and moved to San Francisco.Ben then called Matt to ask if he could start his job the following week.Matt replied that Ben had no job with him.Ben wants to recover the cost of moving expenses from Matt.Under what legal theory may he proceed? Discuss the arguments that Ben and Matt will each make if the claim is brought.

Accepted Answer

The answer of Ben,an accountant in Los Angeles,interviewed with Matt,a...

Question 6

Once a bankrupt debtor ________,creditors no longer have the legal right to collect discharged debts.

Accepted Answer

Once a bankrupt debtor is granted a discharge,creditors no longer have the legal right to collect discharged debts.

Question 7

Arthur contracts to sell Ben his house for $100,000.Later the parties modify the contract by changing the price to $110,000.All other terms remain the same.Why is there no consideration for the second agreement? State two ways in which the parties can circumvent this problem.

Accepted Answer

The answer of Arthur contracts to sell Ben his house...

Question 8

In the case in the text,Doe v.Roman Catholic Archdiocese of Indianapolis,the court held that:

Accepted Answer

The court held that a moral obligation to perform an agreement does not provide sufficient consideration to support the enforcement of an agreement nor does it create an enforceable contract.

Question 9

Which of the following describes the time period a person has to pursue any legal claim?

Accepted Answer

Statutes of limitations set an express statutory time limit on a person's ability to pursue any legal claim.

Question 10

Owen once owed Carl a $1,000 debt,but the statute of limitations ran on that obligation,discharging Owen.Later,Owen promises in writing to pay Carl the debt.Why is there no consideration for this promise? Why is it binding anyway? What additional requirement do some states impose to make the promise binding?

Accepted Answer

The answer of Owen once owed Carl a $1,000 debt,but...

Quiz 12: Consideration