Ch. 8 Exam

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

• True
• False

Consideration can be when you give a benefit or by incurring a detriment.

• True
• False

Forbearance cannot be consideration.

• True
• False

Generally, what the parties give and get as consideration should be equal in economic value.

• True
• False

The person giving a gift is called a promisee.

• 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 a 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

A termination clause always makes a contract invalid for lack of consideration.

• True
• False

Output and requirement clauses make contracts invalid.

• True
• False