Chapter 15 Correct Assignment Answers

Chapter 15 Correct Assignment Answers - 1. No. The fact...

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1. No. The fact that a person is under a moral obligation to pay for a particular service does not constitute consideration so as to make binding a promise to pay for the service. 4. The general rule is that past consideration is no consideration. In this case, Stan prepared Charles’s tax return and was paid for his work. The subsequent promise of an additional $400 for doing an excellent job is unenforceable because it is unsupported by consideration. The benefit conferred, an excellent job on the tax return, was completed before the promise to pay the additional $400 was made (the benefit was completed in the past). “Past consideration is no consideration.” 7. There was a failure of consideration when Proudfoot did not devise a system that would work and save money. Because of this failure of the consideration for the promise of Sanitary Linen to pay money, there was no basis for having made those payments. Consequently, Sanitary Linen was entitled to get its payments back. Note that “failure of consideration,” the term used by the law, is a misnomer. If there were a true
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This note was uploaded on 02/29/2012 for the course BUSINESS 101 taught by Professor Monastersky during the Spring '10 term at Bergen Community College.

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Chapter 15 Correct Assignment Answers - 1. No. The fact...

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