Chapter12 Consideration NEW

Chapter12 Consideration NEW - Chapter12Consideration 1....

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Chapter 12 - Consideration 1. 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 a. adequately considerate. b. equally valuable. c. legally sufficient. d. wisely priced. 2. Axel, the owner of Bar-B-Q Café, announces that he plans to paint its front fluorescent red. Cleo, the owner of Delicate Dress Shop next door, promises to pay Axel $1,000 to use a more conservative color. Axel agrees. Cleo’s promise is a. enforceable, because Axel agreed to refrain from doing something that he was legally entitled to do. b. enforceable, because Axel would resent Cleo if she never paid. c. unenforceable, because Axel agreed to refrain from doing something that he was legally entitled to do.
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d. unenforceable, because Axel’s color choice was offensive to Cleo. 3. Jill promises to pay Kyle $500 because “he does not have as much money as other people.” Jill’s promise is a. enforceable because society wants people to keep their promises. b. enforceable because the redistribution of wealth is a valid social goal. c. not enforceable because Jill could have given more. d. not enforceable because Kyle has not given consideration in return. 4. Coverage, Inc. (CI), coordinates an insurance network that includes 1 million potential patients. By contracting with CI, a medical provider gains access to the network in exchange for accepting payments at lower than market rates. Doctors, Inc., contracts with CI but, when few patients are forthcoming, files a suit to recover the difference between the contract and market rates. The court will most likely rule that the
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contract is a. enforceable because consideration is not required for this contract. b. enforceable because the contract does not lack consideration. c. not enforceable because Doctors received few patients. d. not enforceable because the contract lacks consideration.
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Chapter12 Consideration NEW - Chapter12Consideration 1....

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