cheeseman_buslaw7_tif_11

cheeseman_buslaw7_tif_11 - 11 CONSIDERATION AND PROMISSORY...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1) Sandra accepts an out of court settlement in exchange for dropping a lawsuit. The settlement agreement is supported by consideration in the form of forbearance of a legal right. Answer: TRUE Diff: 1 Topic: Consideration 2) Money is a common form of consideration to support a contract. Answer: TRUE Diff: 1 Topic: Consideration 3) Under the law, written contracts are presumed to be supported by consideration. Answer: TRUE Diff: 1 Topic: Consideration 4) The presumption that contracts are supported by consideration may be overcome by sufficient evidence. Answer: TRUE Diff: 1 Topic: Consideration 5) Something of "legal" value must be given to support a contract. Answer: TRUE Diff: 1 Topic: Consideration 6) A party has given consideration for a contract if that party suffers a legal detriment even if the other party does not receive a benefit. Answer: TRUE Diff: 2 Topic: Consideration 213 CONSIDERATION AND PROMISSORY ESTOPPEL 11
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
7) An agreement where a party gives up the right to sue for injuries in exchange for the right to take part in an activity is insufficient to constitute consideration. Answer: FALSE Diff: 2 Topic: Consideration 8) In order to meet the consideration requirement, the legal detriment suffered by each party must have been given in exchange for that of the other party. Answer: TRUE Diff: 2 Topic: Consideration 9) A promise to make a gift that has been completed can be rescinded by the donor if it was not supported by consideration. Answer: FALSE Diff: 2 Topic: Consideration 10) In some states, the courts will examine the amount of consideration and will allow a party to avoid a contract where the consideration is so inadequate that it "shocks the conscience" of the court. Answer: TRUE Diff: 2 Topic: Consideration 11) Forbearance in the form of refraining from drinking or using tobacco for a specified time period cannot be consideration to uphold a contract. Answer: FALSE Diff: 2 Topic: Consideration 12) Option-to-cancel clauses always render a contract illusory, because one party is not bound to the contract. Answer: FALSE Diff: 2 Topic: Special Issues Concerning Consideration in Business Contracts 13) Promises made out of affection generally lack consideration. Answer: TRUE Diff: 2 Topic: Special Issues Concerning Consideration in Business Contracts 214
Background image of page 2
14) Output and requirements contracts are unenforceable because the buyer or seller is not obligated to buy or sell a specific quantity. Answer: FALSE Diff: 2 Topic: Special Issues Concerning Consideration in Business Contracts 15) A contract in which the seller agrees to sell all of its production to a single buyer is known as an "output contract." Answer: TRUE Diff: 2 Topic: Special Issues Concerning Consideration in Business Contracts 16) A cash payment of $1 given to support a gift promise cannot support a contract. Answer:
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

cheeseman_buslaw7_tif_11 - 11 CONSIDERATION AND PROMISSORY...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online