Ch12-TB1-WBL-10e

Ch12-TB1-WBL-10e - Chapter 13 The Statute of Frauds

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Chapter 12 Consideration N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. Consideration is the value given in return for a promise. ANSWER: T PAGE: 243 TYPE: = 2. For consideration to have “legally sufficient value,” it does not have to con- sist of goods or money. ANSWER: T PAGE: 243 TYPE: = 3. A   promise   by   one   party   to   pay   another   for  refraining   from   an   act   is  enforceable. ANSWER: T PAGE: 243 TYPE: N 4. Use of the word   consideration  in an agreement means that consideration  has been given. ANSWER: F PAGE: 244 TYPE: = 113
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114 TEST BANK 1—UNIT THREE: CONTRACTS AND E-CONTRACTS 5. A transaction that lacks a bargained-for exchange will always be upheld if  the parties consented to it. ANSWER: F PAGE: 244 TYPE: =
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CHAPTER 12: CONSIDERATION 115 6. Parties are not generally free to bargain as they wish. ANSWER: F PAGE: 245 TYPE: N 7. Inadequate consideration may indicate fraud, duress, or undue influence. ANSWER: T PAGE: 245 TYPE: N 8. Normally, a court of law will not question the adequacy of consideration if  the consideration is legally sufficient. ANSWER: T PAGE: 245 TYPE: = 9. The preexisting duty rule permits a party who is bound by contract to per- form a certain duty to use that duty as consideration for a second contract. ANSWER: F PAGE: 247 TYPE: = 10. The courts sometimes allow exceptions to the preexisting duty rule. ANSWER: T PAGE: 247 TYPE: = 11. Two parties can mutually agree to rescind a contract unless it is executory. ANSWER: F PAGE: 247 TYPE: + 12. A later promise to do what one already has a legal duty to do is legally suf- ficient consideration. ANSWER: F PAGE: 247 TYPE: = 13. A promise to pay for an act that has already occurred is enforceable. ANSWER: F PAGE: 247 TYPE: + 14. An illusory promise is a promise that is enforceable without consideration. ANSWER: F PAGE: 249 TYPE: N 15. A contract that one party retains the exclusive right to cancel at any time is  unenforceable.
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116 TEST BANK 1—UNIT THREE: CONTRACTS AND E-CONTRACTS ANSWER: T PAGE: 249 TYPE: =
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CHAPTER 12: CONSIDERATION 117 16. Cashing a check in an amount for less than a balance owed and on which  the debtor has written “payment in full” never bars a dispute over the  amount.
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Ch12-TB1-WBL-10e - Chapter 13 The Statute of Frauds

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