BLAW 3201 Exam 3- Test Bank
Questions and Answers 100% Solved |
Graded A+
A new promise to perform a voidable obligation that has not been avoided
previously is enforceable without new consideration. - ✔✔t
In some states a promise under seal is binding without consideration. - ✔✔t
Past actions unbargained for by the parties in an agreement can become
valid consideration for a contract. - ✔✔f
Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the
side of the road. After Marnie locates her dog, Marnie promises to
reimburse Dana for the cost of treating the dog. Marnie's promise is
binding, because there is a bargained-for-exchange. - ✔✔f
In most, if not all, cases where there is a legal detriment to the promisee,
there is also a legal benefit to the promisor. - ✔✔t
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,The central idea behind consideration is that the parties have intentionally
entered into a bargained exchange with one another and have given each
other something in exchange for a promise or performance - ✔✔t
The Code has changed the common law rule regarding modification of a
preexisting contract by providing that a contract for the sale of goods can
be effectively modified by the parties without new consideration, provided
they intend to do so and act in good faith. - ✔✔t
Sandy's private secretary promises to keep the contents of a letter she
typed secret if Sandy will give her the next day off with pay. If the secretary
takes the day off, Sandy has to pay her for the day. - ✔✔f
A modification of a contract for the sale of goods must always be supported
by additional consideration. - ✔✔f
The parties to a contract may modify the agreement with no additional
consideration by simply substituting a new contract. - ✔✔t
Contracts generally require adequacy of consideration where the
consideration given by both parties is of fair value and equitable. - ✔✔f
In a unilateral contract, a promise is exchanged for an act or forbearance to
act - ✔✔t
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,"Consideration" does not require an actual benefit to both sides of an
agreement. - ✔✔t
If Sam agrees to sell to Thomas all of the tomatoes he wants at $25 a
bushel, there is no contract for lack of consideration. - ✔✔t
A few states provide by statute that the parties need to provide no new
consideration when modifying any contract. - ✔✔t
The element of exchange is absent where a promise is given for an act that
has already been done. - ✔✔t
According to the UCC, only a merchant can make a firm offer to a buyer. -
✔✔t
An exclusive dealing contract is one type of contract which is illusory
because it lacks consideration. - ✔✔f
An agreement to sell the entire production of a particular plant to a
particular purchaser is a requirements contract. - ✔✔f
The Abbot Corporation contracts with the Baker Corporation to sell to
Baker its entire production. After signing the agreement, Abbot can
increase its production from one shift to two shifts and Baker will have to
buy all of the doubled production. - ✔✔f
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, The performance of a pre-existing contractual duty which is neither doubtful
nor the subject of an honest dispute is legally sufficient consideration to
support a second contract. - ✔✔f
Under the common law, in order to be enforceable, a modification of an
existing contract must be supported by mutual consideration. - ✔✔t
The Restatement provides that a promise following the rendering of
emergency services is binding even if not supported by consideration if
necessary to prevent injustice - ✔✔t
In settling a liquidated debt, payment of a smaller amount before the due
date would constitute consideration, but paying a lesser amount on the due
date at an agreed-upon different place of payment would not be legally
sufficient consideration - ✔✔f
Legal sufficiency of consideration and adequacy of consideration are
virtually synonymous terms. - ✔✔f
In a bilateral contract, if one party is not bound, neither party is bound. -
✔✔t
Jerry received a bill for $300 from Johnson for a tune-up Johnson had
performed on Jerry's car. Jerry called Johnson and told him, "The car runs
no better now than before the tune-up. I am sending you $100 and no
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Questions and Answers 100% Solved |
Graded A+
A new promise to perform a voidable obligation that has not been avoided
previously is enforceable without new consideration. - ✔✔t
In some states a promise under seal is binding without consideration. - ✔✔t
Past actions unbargained for by the parties in an agreement can become
valid consideration for a contract. - ✔✔f
Dana gives care to Marnie's dog when Dana finds Marnie's dog ill on the
side of the road. After Marnie locates her dog, Marnie promises to
reimburse Dana for the cost of treating the dog. Marnie's promise is
binding, because there is a bargained-for-exchange. - ✔✔f
In most, if not all, cases where there is a legal detriment to the promisee,
there is also a legal benefit to the promisor. - ✔✔t
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,The central idea behind consideration is that the parties have intentionally
entered into a bargained exchange with one another and have given each
other something in exchange for a promise or performance - ✔✔t
The Code has changed the common law rule regarding modification of a
preexisting contract by providing that a contract for the sale of goods can
be effectively modified by the parties without new consideration, provided
they intend to do so and act in good faith. - ✔✔t
Sandy's private secretary promises to keep the contents of a letter she
typed secret if Sandy will give her the next day off with pay. If the secretary
takes the day off, Sandy has to pay her for the day. - ✔✔f
A modification of a contract for the sale of goods must always be supported
by additional consideration. - ✔✔f
The parties to a contract may modify the agreement with no additional
consideration by simply substituting a new contract. - ✔✔t
Contracts generally require adequacy of consideration where the
consideration given by both parties is of fair value and equitable. - ✔✔f
In a unilateral contract, a promise is exchanged for an act or forbearance to
act - ✔✔t
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,"Consideration" does not require an actual benefit to both sides of an
agreement. - ✔✔t
If Sam agrees to sell to Thomas all of the tomatoes he wants at $25 a
bushel, there is no contract for lack of consideration. - ✔✔t
A few states provide by statute that the parties need to provide no new
consideration when modifying any contract. - ✔✔t
The element of exchange is absent where a promise is given for an act that
has already been done. - ✔✔t
According to the UCC, only a merchant can make a firm offer to a buyer. -
✔✔t
An exclusive dealing contract is one type of contract which is illusory
because it lacks consideration. - ✔✔f
An agreement to sell the entire production of a particular plant to a
particular purchaser is a requirements contract. - ✔✔f
The Abbot Corporation contracts with the Baker Corporation to sell to
Baker its entire production. After signing the agreement, Abbot can
increase its production from one shift to two shifts and Baker will have to
buy all of the doubled production. - ✔✔f
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, The performance of a pre-existing contractual duty which is neither doubtful
nor the subject of an honest dispute is legally sufficient consideration to
support a second contract. - ✔✔f
Under the common law, in order to be enforceable, a modification of an
existing contract must be supported by mutual consideration. - ✔✔t
The Restatement provides that a promise following the rendering of
emergency services is binding even if not supported by consideration if
necessary to prevent injustice - ✔✔t
In settling a liquidated debt, payment of a smaller amount before the due
date would constitute consideration, but paying a lesser amount on the due
date at an agreed-upon different place of payment would not be legally
sufficient consideration - ✔✔f
Legal sufficiency of consideration and adequacy of consideration are
virtually synonymous terms. - ✔✔f
In a bilateral contract, if one party is not bound, neither party is bound. -
✔✔t
Jerry received a bill for $300 from Johnson for a tune-up Johnson had
performed on Jerry's car. Jerry called Johnson and told him, "The car runs
no better now than before the tune-up. I am sending you $100 and no
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
