Mann_TB_Ch12 - Chapter 12Consideration TRUE/FALSE 1. A new...

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Chapter 12—Consideration TRUE/FALSE 1. A new promise to perform a voidable obligation that has not been avoided previously is enforceable without new consideration. ANS: T PTS: 1 2. In some states a promise under seal is binding without consideration. ANS: T PTS: 1 3. Past actions unbargained for by the parties in an agreement can become valid consideration for a con- tract. ANS: F PTS: 1 4. Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the side of the road. After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog. Marnie's promise is binding, because there is a bargained-for-exchange. ANS: F PTS: 1 5. In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor. ANS: T PTS: 1 6. The central idea behind consideration is that the parties have intentionally entered into a bargained ex- change with one another and have given each other something in exchange for a promise or perform- ance. ANS: T PTS: 1 7. The Code has changed the common law rule regarding modification of a preexisting contract by providing that a contract for the sale of goods can be effectively modified by the parties without new consideration, provided they intend to do so and act in good faith. ANS: T PTS: 1 8. Sandy's private secretary promises to keep the contents of a letter she typed secret if Sandy will give her the next day off with pay. If the secretary takes the day off, Sandy has to pay her for the day. ANS: F PTS: 1 9. A modification of a contract for the sale of goods must always be supported by additional considera- tion. ANS: F PTS: 1
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10. The parties to a contract may modify the agreement with no additional consideration by simply substi- tuting a new contract. ANS: T PTS: 1 11. Contracts generally require adequacy of consideration where the consideration given by both parties is of fair value and equitable. ANS: F PTS: 1 12. In a unilateral contract, a promise is exchanged for an act or forbearance to act. ANS: T PTS: 1 13. "Consideration" does not require an actual benefit to both sides of an agreement. ANS: T PTS: 1 14. If Sam agrees to sell to Thomas all of the tomatoes he wants at $25 a bushel, there is no contract for lack of consideration. ANS: T PTS: 1 15. A few states provide by statute that the parties need to provide no new consideration when modifying any contract. ANS: T PTS: 1 16. The element of exchange is absent where a promise is given for an act that has already been done. ANS: T PTS: 1 17. According to the UCC, only a merchant can make a firm offer to a buyer. ANS: T PTS: 1 18. An exclusive dealing contract is one type of contract which is illusory because it lacks consideration.
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Mann_TB_Ch12 - Chapter 12Consideration TRUE/FALSE 1. A new...

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