Business Law - Chapter 8

What a promisor demands and generally must receive to make a promise legally binding.

• Offer

• Contract

• Consideration

• None of these

Promises not supported by consideration are generally unenforceable.

• True

• False

Gifts can only be made enforceable in specific instances.

• True

• False

What parties give and receive as consideration need to be of equal economic value.

• True

• False

Termination clauses make promises illusory.

• True

• False

Whether public or private, a promise to perform an existing duty cannot be used as consideration.

• True

• False

Past performance cannot be used as consideration for a new promise.

• True

• False

Possible forms of consideration include

• Act

• Forbearance

• Promise

• All of these

Group of creditors that cooperatively agree to accept less than what they are entitled to:

• gaggle of creditors

• murder of creditors

• composition of creditors

• either a or b

A debt where the parties agree that the debt exists and on the amount of the debt is

• liquidated

• unliquidated

• both of these

• none of these