question

society enforces all promises in the interests of simple morality

answer

false

question

consideration can be a promise or an act

answer

true

question

agreeing not to open a competing business could be consideration

answer

true

question

The UCC requires consideration for agreements modifying contracts for the sale of goods

answer

false

question

Billy owes a liquidated debt of 3000 to Rayne, his personal weight trainer. Billy sends Rayna a check for $300 on which he has marked, "Payment in full". If Rayne cashes the check she will NOT be able to successfully due Billy for the remainder of the debt

answer

false

question

Raul agrees to paint Mike's house for 1,000. Before finishing, Raul states it is too hot to finish, and Mike offers to pay 1,200 if Raul finishes. Mike's statement that he will pay 1,200 is unenforceable.

answer

True

question

Contracts in which one party agrees to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount

answer

false

question

al illusory promise is not consideration

answer

true

question

contracts generally do not require bargaining that leads to an exchange between parties

answer

false

question

courts normally require adequate consideration

answer

false

question

Section 2-306 of the UCC expressly disallows output contracts in the sale of goods

answer

false

question

Denton agreed to build a cedar deck for the Thrashers for $7000. After he began the work, the Thrashers asked him to add cedar flower boxes at one side. Denton replied he would, but it would cost an additional $600. The Thrashers would not be obligated to pay the additional sum because the original agreement already obligated Denton to complete the deck for $7000

answer

false

question

Pastor Tom was employed by the First Church for 40 years. On Pastor Tom's retirement there was no adequate pension plan. Two months after the retirement, a wealthy parishioner, in consideration for Pastor Tom's 40 years of faithful service and for being such a sweet man, promised to pay him $500 per month for the rest of his life. This promise is probably not enforceable.

answer

true

question

Hilda owes Lex $3000, which is an undisputed amount. If she offers him her car in full settlement of the debt and he accepts, the agreement is binding and he can no longer claim she owes him anything on the original debt

answer

True

question

An agreement to pay a lesser amount to settle an unliquidated debt is

answer

enforceable, as there is consideration

question

in the historic case of Hamer v. Sidway, the nephew:

answer

won, as there WAS consideration

question

What phrase is critical to the validity of a requirements contract

answer

"in good faith"

question

Utah court of appeals in the dements v. estate of Tallas's case found

answer

the trial court correctly determined that there was no consideration to support Tallas's promise

question

In January, Alex promised to pay Y-K Inc $5000 check from Alex. Which of the following statements is correct

answer

Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable

question

Zero inc agreed to build Millie a storage building for 8,000. After beginning the project Zero realized that it could not complete the job and make a profit. Zero demanded 9,500 to complete the building. Millie agreed to pay the 9,500. When the project was complete, Millie tendered 8,000 to Zero for the job. If Zero sues Millie for the remaining 1,500

answer

Zero will lose because there was no legal consideration to support the additional 1,500

question

an unliquidated debt can be described as

answer

a debt in which the existence or amount is in dispute

question

"I'll sell you my car if I decide to sell it" is an example of

answer

an illusory promise

question

A promise by Derkin's Restaurants to buy all of the produce it needs this next year at an established price from Elfredo's Produce would be an

answer

enforceable requirements contract

question

Bernie owes an undisputed amount to Wilde's heating and air conditioning. Which of the following is true?

answer

if wile's agrees to accept less than the full amount as full payment, the agreement is not binding.

question

police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true

answer

Police officer Paul is not entitled to the reward because he was under a pre-existing duty to make the arrest

question

Walter worked night as a clerk in a fast-food store. On his last work shift, Walter's boss told him "I'm really grateful for the year that you have worked here. I am going to give you bonus of 1,000 in your last paycheck. when Walter got his last paycheck, there was no bonus. If Walter dues, the likely result will be

answer

Walter will lose, as he gave no consideration

question

If Rudy offers Oscar $200 for his $600 stereo and Oscar agrees, a court will probably

answer

not set aside the agreement based on the adequacy of of the consideration

question

Jamie is building a new house on her lot. She invites Earnie of Earnie's Excavation to bid on the excavation job. Earnie observe that the lot next to Jaime's is also under excavation and the soil in that lot is normal and not excessively rocky. Based on the assumption that the soil in Jamie's lot will be similar, he and Jaime agree that the excavation will cost $3,000. When Earnie starts digging, he learns that there is solid rock under Jamie's lot. Earnie says it will cost an extra $2,500 for the excavation work. Jaime agrees just to get the job done but later refuses to pay a dime more than 3,000. If Earnier sues, the most likely result would be

answer

Earnie wins, as the modification was due to unseen difficulties

question

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is

answer

not enforceable because Becky does not have a legal right to drink alcohol

question

Upon college grad, Kathy announced her plans to attend law school the following fall and to marry Rick in December. Kathy's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out. He promised her 10,000 is she postponed her wedding until completing her first year of law school, but soon thereafter, Kathy's father died. The administrator of her father's estate claimed she was not entitled to the $10,000 because there was no consideration of her father's death. If Kathy sues the estate,

answer

She will be successful, as there was no consideration

question

Under the union commercial code (UCC), an agreement modifying a contract

answer

may not require consideration

question

Mary owes $3,800 on her credit card. She sends the credit card company a check for $800 with the notation "payment in full" on the check. If the credit card issuer cashes the check:

answer

The check may be subject to a UCC exception to the general rules for accord and satisfaction cases involving checks

question

If Crosby and Dash are in disagreement as to the exact amount of money that Crosby owes Dash, then they may choose to form a new agreement at a set amount. If they both perform the new agreement, their conduct would be an example of

answer

an accord and satisfaction

question

An agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as

answer

an output contract

question

The Plaza hotel contracts with EZ lawn to have EZ mow the grass on the Plaza ground for the next 10 years. However there is a clause in the contract that states if the hotel closes, the contract may be terminated provided Plaza pays EZ $2,000 on termination. Which of the following is correct?

answer

The contract is enforceable because the option to cancel clause is supported by consideration

question

Mid-American Oil had a contract with NSB company to supply 1,000 gallons of oil by September 1. The contract contained a provision which required all modifications to be written and signed by the company presidents. In early August, an executive of Mod-American talked with the purchasing agent of NSB who orally agreed to two shipments of oil; one in September and the second one in December. By September 30, when only 500 gallons had been delivered, NSB sued. The likely outcome of this lawsuit is

answer

NSB wins because the modification has to be in writing

question

Bailey C and Spryt Bros enter in a contract for the manufacture and sale of 400 lawn chairs. If both parties agree that a modification is necessary:

answer

An agreement to rescind the contract will terminate the contractual rights of Bailey Co and Spryt if neither of them had completed their obligations

question

Marco agrees to sell Clowns R Us some balloons. The contract states that Clowns maybe as many balloons as it wishes. This agreement is

answer

An illusory contract

question

The Kelsoe v. International Wood Products Inc case was an example of

answer

lack of consideration

question

The Kelsoe v. International Wood Products Inc case was an example of

answer

lack of consideration

question

The Kelsoe v. International Wood Products Inc case was an example of

answer

lack of consideration

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