12 - Ch.12 Quiz Instructions Please read the questions...

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Ch.12 Quiz Instructions Please read the questions carefully. This assessment is worth 100 points. 1. Consideration can be either an act or a promise. (5 points) True False 2. Consideration is an act or a promise that involves either doing something one had no prior legal duty to do, and refraining from something one had a legal right to do. (5 points) True False 3. A promise to refrain from smoking is not consideration because it does not convey anything of economic value to the other party. (5 points) True False 4. In return for services B performed for A in the past, A promises to pay B $1000. There is no consideration for A's promise. (5 points) True False 5. A promises to pay B $100 per week, in exchange for B's promise not to beat A up. There is no consideration for A's promise. (5 points) True False 6. A and B contracted for A to mow B's lawn once a week for 20 weeks, at a price of $20 per week. Later, without terminating the first contract, the parties modify the contract as follows: A will mow B's lawn in exactly the same way for exactly the same time period, in exchange for B's promise to pay A $22 per week. There is no consideration for B's promise. (5 points) True False 7. A liquidated debt is a debt that has been fully paid. (5 points) True False 8. A promise not to sue another party is not consideration, because the promise does not convey any legal value to the other party. (5 points)
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True False 9. In many states, a debtor's written promise to pay a debt the enforcement of which is barred by the statute of limitations, is a binding promise that the courts will enforce. This is true even though the creditor does not give the debtor any new consideration for the
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This note was uploaded on 02/28/2012 for the course ACCT 460 taught by Professor Charley during the Spring '12 term at Aachen University of Applied Sciences.

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12 - Ch.12 Quiz Instructions Please read the questions...

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