Chapter 8 Law Test

Consideration is what he promisor demands and generally must receive in order to make his or her promise legally binding against him or her.

• True

• False

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

• 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

What are the three possible forms of consideration?

• an act, a forbearance, or a promise

• an act, a promise, or a donation

• an act, a donation, or a promise

• a donation, a forbearance, or a promise

If a contract contains a clause that allows you to escape the legal obligation, the promise is said to be

• nominal consideration

• illusory

• adequate consideration

• none of these

A liquidated debt is one where the parties agree

• the debt exists

• on the amount of the debt

• both a and b

• none of these

Which of the following is not consideration?

• future performance

• immediate performance

• past performance

• present performance

The statute of limitation specifies

• the maximum amount of money one can receive on a claim

• the time limit for bringing a lawsuit based on a claim

• the maximum amount of people who can file on the same claim

• the time limit for consideration

When consideration is provided to keep an offer open, it creates

• a promissory estoppel

• an option contract

• a firm offer

• none of these

An importatn exception to the general rule that mutual consideration is necessary for a valid contract or binding promise is

• promissory estoppel

• option contract

• firm offer

• none of these