CONTRACT LAW - QUIZ

Under what condition is a contract said to have legal value?

• 
  The promisee makes a verbal agreement

• The contract is written

• 
  The promisor receives a gift

• 
  The promisee suffers a legal detriment

What is the doctrine that allows a court to enforce a contract without consideration?

• Promissory estoppel

• Gift promise

• Legal benefit

• Contractual obligation

Mark, who recently won a lottery, tells Sean that he will split his lottery winnings with him,

if Sean can arrange an interview between Sean's boss and Mark. Sean talks to his boss and the

meeting is arranged. But when Sean goes to collect half of Mark's lottery winnings, Mark

refuses to pay. What is the act of consideration in this scenario?

• 
  Mark's promise to pay

• 
  Mark winning the lottery

• Sean arranging the interview

• 
  Sean's expectation of payment

What can convert a gift promise into an enforceable promise?

• If the promise is made publicly

• 
  If the promise is made in writing
  

• If the promisee offers a consideration

• 
  If the promise is verbal

Which of the following is true about illegal consideration?

• Contracts based on illegal consideration are void

• 
  Illegal consideration requires a witness

• Illegal consideration is always valid

• Illegal consideration can be enforced in court

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she

checks the lottery results while Mary is away. Sharon agrees to do so, provided she has the

time for it. If Sharon fails to check the results and Mary wins the lottery, which of the following

would be true for the contract between Mary and Sharon?

• Neither Mary nor Sharon can claim breach of contract.

• 
  The contract is void due to lack of consideration.

• 
  Sharon can claim breach of contract against Mary.

• 
  Mary can claim breach of contract against Sharon.

What is it called when a promise lacks consideration because a person is already obligated to perform an act?

• Past consideration

• Preexisting duty

• 
  Mutual assent

• 
  Illusory promise

  
  

Dean Campenella is a detective with the California state police. During the investigation of a

missing child, Campenella found new clues that led to the capture of a serial killer involved

in another case. Since Campenella was not involved in the serial killer case, and found the

clues while investigating another case, Campenella demanded a special reward from the state

police department for helping catch the killer. But his demand was declined citing lack of

consideration. while investigating another case, Campenella demanded a special reward from the state

police department for helping catch the killer. Why was Dean Campenella's demand for a reward declined?

• It lacked consideration due to preexisting duty.

• 
  The state police had no budget for rewards.

• 
  It was not a valid contract because it was verbal.

• He did not provide sufficient evidence for the reward.

Hartman, who has worked for Aratize Inc. for 25 years, is retiring. Upon hearing the news of

his retirement, the president of Aratize announces a bonus of $250,000 to Hartman for his

exceptional services toward Aratize thus far. But upon retiring, Hartman isn't paid the bonus.

Hartman decides to sue the president and Aratize to recover the promised bonus. Which of the following is true of this case?

• 
  It will be enforceable because it was a verbal agreement.

• 
  It will not be enforceable in court because of past consideration.

• It will be enforceable since Hartman worked for 25 years.

• 
  It will not be enforceable due to lack of mutual assent.

Corey desperately needs to get to the airport and decides to take his neighbor Tanner's help.

Tanner agrees to help and drives Corey to the airport. Upon arrival at the airport, Corey promises to pay Tanner $25 towards gas money. Which of the following contracts does Corey's

promise fall under?

• Past consideration

• 
  Preexisting duty

• Illusory promise

• Future consideration