BUSINESS LAW CH. 8 REVIEW

Forbearance cannot be consideration.

• true

• false

The person who makes a gift is called the donee

• true

• false

Courts do not consider the adequacy or economic value of consideration

• true

• false

Token amounts given as consideration are referred to as normal consideration

• true

• false

Termination clauses always make a contract invalid for lack of consideration

• true

• false

Illusory promises generally have termination clauses.

• true

• false

Existing duty cannot serve as consideration to bind the other party to the contract

• true

• false

Mutual gift giving is enforceable in court where consideration is concerned.

• true

• false

Illusory contracts usually have a clause that allows one party to back out of the promise.

• true

• false

An act that has already been performed can serve as consideration

• true

• false