Business Law - Chapter 8 8.2

A promise worded so that it does not creat or increase your legal obligation is said to be _____________________________.

• illusory

• release

• liquidated debt

• past consideration

Termination clauses always make a contract invalid for lack of consideration.

• True

• False

Output clauses are made enforceable through the courts imposing the duty of ___________________________ on the parties.

• fair dealing

• bankruptcy

• accord and satisfaction

If you already owe a duty, that duty cannot be used as consideration.

• True

• False

Past consideration is not binding consideration.

• True

• False

When there is a dispute over the amount owed a subsequent agreement stipulating that amount and promising its payment is referred to as a(n)

• accord

• satisfaction

• output contract