B-Law Ch 8 Study Guide

The transfer of ownership without receiving anything in return is called a gift

• True

• False

Consideration can be given by conferring the benefit or by incurring a detriment.

• True

• False

Consideration never consists of a change in a party's legal position as a result of the contract.

• True

• False

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

• True

• False

A promise must be binding to be consideration.

• True

• False

A debtor cannot settle a claim by paying less than the full amount even if additional consideration is given.

• True

• False

Past performance by one party to a contract is always legally sufficient consideration for new promise by the second party.

• True

• False

To promise to do something that you are already obligated to do by law cannot serve as consideration.

• True

• False

There are no exceptions to the general rule that mutual consideration is necessary for a valid contract.

• True

• False

The statute of limitations specifies a time limit for consideration.

• True

• False