Ch 8 Business Law: Consideration

The transfer of ownership without receiving anything in return is called a gift.

• TRUE

• FALSE

Consideration can be given by confering the benefit or by incurring a detriment.

• TRUE

• FALSE

Consideration never consists of a change in a party's legal position as a result of the contract.

• TRUE

• FALSE

Past performance by one party to a contract is always legally sufficient consideration for a new promise by the second party.

• TRUE

• FALSE

To promise to do something that you are already obligated to do by law cannot serve as consideration.

• TRUE

• FALSE

There are no exceptions to the general rule that mutual consideration is necessary for a valid contract.

• TRUE

• FALSE

The statute of limitations specifies a time limit for consideration

• TRUE

• FALSE

If a contract contains a termination clause for any reason, the promise to perform is illusory?

• TRUE

• FALSE

A person under contract can sign another contract that offers more money and benefits.

• TRUE

• FALSE

Existing public duty limit public officials from making promises.

• TRUE

• FALSE