Biz Law Ch 8 Review

Consideration is what the promisor needs out of the bargain to make his or her promise legally binding against him or her.

• True
• False

A promise unsupported by consideration is generally unenforceable.

• True
• False

Generally a promise to make a gift is enforceable.

• True
• False

Generally, what the parties give and get as consideration need to be of equal economic value.

• True
• False

If a contract's termination clause gives a party the right to terminate for any reason whatsoever er, that party's promise to perform would be illusory and non-binding as consideration.

• 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

The payment of money for the release of an un-liquidated tort claim is adequate consideration to make the release enforceable.

• True
• False

A promise to make a gift to a charitable organization can be made enforceable by the charity sending a written request for the money to the potential donor within 30 days.

• True
• False

What are the three possible forms of consideration?

• an act, a forbearance, or a promise
• an act, a promise or a dontation
• an act, a donation or a promise
• a donation, a forbearance, or a promise

A group of creditors that cooperatively agree to accept less than what they are entitled to form a particular debtor is legally known as a (n)

• gaggle of creditors
• murder of creditors.
• composition of creditors
• either a or b