Ch12-TB2-WBL-10e

Ch12-TB2-WBL-10e - Chapter12 Consideration

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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. Performance that creates a legally binding contract may consist of an act. ANSWER: T PAGE: 243 TYPE: = 2. If a promise is made, it will be enforced. ANSWER: F PAGE: 243 TYPE: = 3. Legally sufficient consideration is something of value in the eyes of the law. ANSWER: T PAGE: 243 TYPE: N 4. Consideration need   not   be given as part of a bargained-for exchange to  create an enforceable contract. ANSWER: F PAGE: 244 TYPE: = 5. Failing to use the word   consideration   in an agreement means that no  consideration has been given. 115
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116 TEST BANK 2—UNIT THREE: CONTRACTS AND E-CONTRACTS ANSWER: F PAGE: 244 TYPE: =
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CHAPTER 12: CONSIDERATION 117 6. Inadequate consideration may reflect a lack of bargained-for exchange. ANSWER: T PAGE: 245 TYPE: = 7. A promise to do something that one has no prior legal duty to do is   not  consideration. ANSWER: F PAGE: 247 TYPE: = 8. Unforeseen difficulties that justify a demand for additional compensation  include risks ordinarily assumed in business. ANSWER: F PAGE: 247 TYPE: = 9. Extraordinary difficulties that were unforeseen at the time a contract was  formed do not justify a demand for additional compensation. ANSWER: F PAGE: 247 TYPE: N 10. Two parties can mutually agree to rescind a contract only if one of the  parties has fully performed his or her duties. ANSWER: F PAGE: 247 TYPE: = 11. An obligation is enforceable only if it is supported by past consideration. ANSWER: F PAGE: 247 TYPE: = 12. Any promise made with respect to a past event is enforceable because the  event is certain—it has already occurred. ANSWER: F PAGE: 247 TYPE: = 13. Cashing a check in an amount for less than a balance owed and on which  the debtor has written “payment in full” will discharge a liquidated debt. ANSWER: F PAGE: 250 TYPE: + 14. An accord and satisfaction is used to discharge a liquidated debt. ANSWER: F PAGE: 250 TYPE: =
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118 TEST BANK 2—UNIT THREE: CONTRACTS AND E-CONTRACTS 15. A release is a contract in which one party forfeits the right to pursue a legal  claim against another. ANSWER: T PAGE: 250 TYPE: = 16. A release always bars further recovery. ANSWER:
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch12-TB2-WBL-10e - Chapter12 Consideration

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