BLAW Ch 12 – Flashcards
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Risks ordinarily assumed in business constitute consideration for the modification of a contract.
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False
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A bargained-for exchange is one of the elements of consideration.
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True
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If a debt is in dispute, an accord and satisfaction cannot take place.
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True
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In many states, a release requires a signed writing.
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True
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The doctrine of promissory estoppel does not apply unless there is a clear and definite promise.
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False
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An obligation is enforceable only if it is supported by past consideration.
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False
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Joel contracts to hire Huong for one year to tend the orchids in his commercial greenhouse but reserves the right to cancel the employment on one month's notice at any time after Huong begins work. This promise is
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enforceable
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Sonic Board Corporation files a suit against Custom Fabricators Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if
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something of value passed between the parties
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Metal Fabrication Corporation promises to give stock options to Sigourney for processes she has already designed for the firm. This promise is
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unenforceable
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Fact Pattern 12-1B Sal contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract. Refer to Fact Pattern 12-1B. Sal and Tasty
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may rescind their contract to the extent that it is executory
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Quinn promises to sell his recreational vehicle (RV) to Sid, who builds a structure behind his house in which to keep it. Quinn's later attempt to renege on the promise is
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not effective if Sid detrimentally relied on Quinn's promise
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Rollo promises to perform, for a price, shoe repair services in affiliation with Togs 'n Things, a clothing store. To support a contract, the consideration exchanged by the parties must be
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legally sufficient
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Chip's Chips Company agrees to supply Delicioso Café with all the corn chips that it requires for a year. A sudden demand for ethanol results in a shortage of corn, and the price rises sharply. Chip's asks Delicioso to pay a higher price for the chips. This request is
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valid due to the unforeseen difficulty of the sudden price increase
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In a skateboarding accident with Ryan, Starla is injured. Ryan's insurance company's offers her $25,000 to release him from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release
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bars Starla's further recovery from Ryan
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Gino files a suit against Free-Flo Plumbing Corporation under the doctrine of promissory estoppel. Gino must show that
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he justifiably relied on Free-Flo's promise to his detriment
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Jeff offers Kelly $500 for her three-year-old laptop computer. Kelly accepts. If a dispute arises, a court would likely
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not question the adequacy of the consideration
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Triple-D Cinemas promises to pay Shakir $1,000 to repair and clean its marquee. The act of doing this work is
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consideration
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Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties.
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False
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Any promise made with respect to a past event is enforceable because the event is certain¾it has already occurred.
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False
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In contract law, "consideration" refers to the time that a party takes to evaluate a deal.
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False
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A release bars further recovery beyond the terms stated in the release.
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True
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Extraordinary difficulties that were unforeseen at the time a contract was formed do not justify a demand for additional compensation.
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False
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Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words "payment in full." Nat cashes the check. This discharges the entire debt
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if the debt is unliquidated
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An accord and satisfaction is used to discharge an unliquidated debt.
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True
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Speedy Assembly Company promises its employees a 10-percent raise at the end of the year if productivity has increased and management feels it is warranted. Speedy must
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do nothing
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