Question 1

An illusory promise is not consideration.

Accepted Answer

An illusory promise is not consideration.

Question 2

Partial payment of a debt may or may not be valid consideration, depending on whether the debt is liquidated or unliquidated.

Accepted Answer

Partial payment of a debt may or may not be valid consideration, depending on whether the debt is liquidated or unliquidated.

Question 3

An exception to the rule requiring consideration is promissory estoppel.

Accepted Answer

One exception to the rule requiring consideration is promissory estoppel.

Question 4

What did the court in the case in the text, Labriola v. Pollard Group, Inc., rule regarding whether the noncompete agreement at issue in the case was enforceable?

Accepted Answer

The noncompete agreement lacked independent consideration and was not enforceable against the employee.

Question 5

Which of the following are examples of consideration?

Accepted Answer

Consideration may be a benefit to the promisor, a detriment to the promisee, a promise to do something, or a promise to refrain from doing something.

Question 6

A promise to do something that you are already obligated to do is generally valid consideration.

Accepted Answer

A promise to do something that you are already obligated to do is not valid consideration.

Question 7

Which of the following occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise?

Accepted Answer

Promissory estoppel occurs when: One party makes a promise knowing the other party will rely on it; The other party does rely on the promise; and The only way to avoid injustice is to enforce the promise.

Question 8

In a bilateral contract, the consideration for a promise is a completed act.

Accepted Answer

In a bilateral contract (a promise for a promise), the "consideration" for each promise is a return promise.

Question 9

Which of the following is true regarding the adequacy of consideration?

Accepted Answer

The court seldom considers adequacy of consideration.

Question 10

Which of the following is what a person will receive in return for performing a contractual obligation?

Accepted Answer

Consideration is what a person will receive in return for performing a contract obligation.

Question 11

Which of the following consists of something of value given to another party in exchange for something else of value?

Accepted Answer

Consideration can be anything, as long as it is the product of a bargained-for exchange.

Question 12

Consideration is optional in every contract.

Accepted Answer

For a promise to be enforced by the courts, there must be consideration.

Question 13

Which of the following is an exception to the rule requiring consideration?

Accepted Answer

One exception to the rule requiring consideration is promissory estoppel.

Question 14

Past consideration, as a rule, qualifies as consideration.

Accepted Answer

Past consideration is no consideration at all.

Question 15

An unliquidated debt may be the subject of an accord and satisfaction.

Accepted Answer

A dispute over an unliquidated debt may be settled for less than the full amount if the parties enter into an accord and satisfaction.

Question 16

In a bilateral contract, the consideration for each promise is _____________.

Accepted Answer

In a bilateral contract (a promise for a promise), the "consideration" for each promise is a return promise.

Question 17

In Japan a promise to give property to one party gratuitously cannot be cancelled, regardless of whether or not it is in writing.

Accepted Answer

In Japan, however, a promise to give property to one party gratuitously is enforceable, although Japan's Civil Code provides that a gift not in writing can be cancelled.

Question 18

The UCC permits requirement, but not output, contracts for the sale of goods.

Accepted Answer

Under UCC Section 2-306, requirement and output contracts are permitted for the sale of goods.

Question 19

Which of the following would not be considered an example of consideration?

Accepted Answer

Performance of a duty you are obligated to do under the law is not good consideration.

Question 20

In a unilateral contract, the consideration for a promise is _____________.

Accepted Answer

In a unilateral contract (a promise for an act), one party's consideration is the promise and the other party's consideration is the act.

Quiz 9: Introduction to Contracts and Agreement

An illusory promise is not consideration.

Partial payment of a debt may or may not be valid consideration, depending on whether the debt is liquidated or unliquidated.

An exception to the rule requiring consideration is promissory estoppel.

What did the court in the case in the text, Labriola v. Pollard Group, Inc., rule regarding whether the noncompete agreement at issue in the case was enforceable?

Which of the following are examples of consideration?

A promise to do something that you are already obligated to do is generally valid consideration.

Which of the following occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise?

In a bilateral contract, the consideration for a promise is a completed act.

Which of the following is true regarding the adequacy of consideration?

Which of the following is what a person will receive in return for performing a contractual obligation?

Which of the following consists of something of value given to another party in exchange for something else of value?

Consideration is optional in every contract.

Which of the following is an exception to the rule requiring consideration?

Past consideration, as a rule, qualifies as consideration.

An unliquidated debt may be the subject of an accord and satisfaction.

In a bilateral contract, the consideration for each promise is _____________.

In Japan a promise to give property to one party gratuitously cannot be cancelled, regardless of whether or not it is in writing.

The UCC permits requirement, but not output, contracts for the sale of goods.

Which of the following would not be considered an example of consideration?

In a unilateral contract, the consideration for a promise is _____________.