Worksheets8.2 Questionable Consideration
Total questions: 15
Worksheet time: 9mins
Name
Class
Date
1.
Historically free made promises were not enforced unless they had what supporting them?
a)
A. Witnesses of good character
b)
B. A signed statement of the Secretary of State
c)
C. Consideration
d)
D. Affidavits of profit attached to the promise
2.
In order for the consideration requirement in contracts to be met:
a)
A. the consideration given by each party must be of roughly equal value.
b)
B. each party must give consideration.
c)
C. the consideration must have monetary value.
d)
D. the consideration must consist of some form of property.
3.
Which of the following meets the requirements of consideration?
a)
A. A promise not to engage in a crime or tort
b)
B. A promise without a binding obligation
c)
C. A promise that involves the exchange of a legal value
d)
D. A promise to do a preexisting duty
4.
Consideration can be a(n) _____ in the case of a unilateral contract.
a)
A. security
b)
B. guarantee
c)
C. act
d)
D. promise
5.
In deciding whether consideration necessary to form a contract exists, a court must determine whether:
a)
A. the consideration given by each party is of roughly equal value.
b)
B. the consideration conforms to the subjective intent of the parties.
c)
C. the consideration has sufficient monetary value.
d)
D. there is mutuality of consideration.
6.
John promised the other co-owners of the ship Sea Fairy that he would insure the ship for an upcoming voyage. However, John fails to insure the ship. The ship is shipwrecked in a turbulent sea. The co-owners sue John for breach of contract. Will they succeed?
a)
A. Yes, because there was a valid and binding contract between the co-owners.
b)
B. No, because it was a purely gratuitous promise.
c)
C. No, because an intervening cause absolved John's liability.
d)
D. Yes, because of promissory estoppel.
7.
Jack went to the ABC Casino to gamble. ABC offers its customers one free spin of the Million Dollar Wheel if they fill out an application form. Jack filled out the form, spun the Million Dollar Wheel, and won. However, now ABC refuses to pay, claiming that because Jack did not purchase his chance at the Million Dollar Wheel, Jack gave no consideration and therefore, no contract was formed. Identify the accurate statement.
a)
A. No contract was formed because Jack paid no money for his chance at the Million Dollar Wheel.
b)
B. No contract was formed because ABC did not sign any written contract as an obligation to do so.
c)
C. A contract was formed because filling out an application can constitute legal consideration.
d)
D. A contract was formed because no consideration is needed when a customer takes advantage of a "free" offer.
8.
Mr. White contracts with his wife Ms. White to watch their kids, Joe and Jimmy, for $50 for night. What is the status of the contract between Mr. Smith and Ms. White?
a)
A. There is no contract because Ms. White gave inadequate consideration
b)
B. There is a contract as long as Mr. White registers the contract with the Secretary of State
c)
C. There is a contract as long as $50 is a reasonable profit for watching the kids
d)
D. There is a contract as long as a court reviews the terms within 30 days
9.
James owns Great Expectations, a trendy restaurant in Manhattan. He enters into a contract with Mary, who makes and sells pastries. The contract states that Mary will "supply all of Great Expectation's needs" for pastries for the next year. Is this contract enforceable?
a)
A. Yes, because this is a requirements contract.
b)
B. Yes, but only if James buys all of the pastries produced by Mary in the next year.
c)
C. No, because the promise fails to specify the quantity of goods to be purchased.
d)
D. No, because James might not need any pastries in the next year.
10.
Contracts in which one party to the agreement agrees to buy all of the other party's production of a particular commodity is called a(n):
a)
A. requirements contract.
b)
B. composition agreement.
c)
C. output contract.
d)
D. nominal consideration.
11.
An agreement in which a party promises to supply all the other party's needs for a particular commodity is called a(n):
a)
A. requirements contract.
b)
B. composition agreement.
c)
C. output contract.
d)
D. nominal consideration.
12.
Mr. Green is a local mobster who makes Mr. Blue pay $100 not to have his business burned to the ground. What is the status of the contract between Mr. Green and Mr. Blue?
a)
A. There is no contract because Mr. Green gave inadequate consideration
b)
B. There is a contract as long as Mr. Green registers the contract with the Secretary of State
c)
C. There is a contract as long as $100 is a reasonable profit for not burning down the business
d)
D. There is a contract as long as a court reviews the terms within 30 days
13.
Able borrowed $10,000 from Baker, promising to return it with $1,000 interest on January 1, 2006. There is no dispute that Able owes Baker $11,000 due on January 1, 2006. On that day, Able gave Baker a valid check in the amount of $10,500 marked "payment in full for loan due January 1, 2006." Baker accepted that check and deposited it into his account. If Baker then sues Able for the unpaid $500, what would the result be?
a)
A. Able wins, because Baker accepted the lesser payment.
b)
B. Able wins, because Baker made an implied promise to accept $10,500 as full payment, thereby forgiving $500 of the loan.
c)
C. Baker wins, because Able gave no consideration in exchange for Baker's promise to forgive $500 of the loan.
d)
D. Baker wins, because marking "payment in full" can never relieve a party of its original obligations under a contract.
14.
Gift promises are not generally enforceable because they lack:
a)
A. legality.
b)
B. capacity.
c)
C. consideration.
d)
D. agreement.
15.
Mr. Blue gave Mr. Green $1000 to help his family out. Later Mr. Blue entered into a sales contract with Mr. Green and wanted the consideration to be in part the $1000. What is the term for the $1000?
a)
A. Past Consideration
b)
B. Future Consideration
c)
C. Equitable exchange
d)
D. Present Intent
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