BLAW 3201 Fry Exam 4 Test Questions
with All Accurate Solutions Graded A+
2025-2026 Updated.
Consideration - Answer The inducement to enter into a contract.
Elements: legal sufficiency and bargained-for exchange
Legal Sufficiency (Legal Detriment and/or Legal Benefit) - Answer Consists of either a
detriment to the promise or a benefit to the promisor
Legal Detriment - doing an act one is not legally obligated to do or not doing an act that one has
a legal right to do
Legal Benefit - obtaining something to which one had no prior legal right
Adequacy - not required where the parties have freely agreed to the exchange
Legal Sufficiency --> Illusory Promise - Answer Promise that imposes no obligation on the
promisor; the following promises are not illusory:
-Output Contract - agreement to sell all of one's production to a single buyer
-Requirements Contract - agreement to buy all of one's needs from a single producer
-Exclusive Dealing Contract - grant to a franchisee or licensee by a manufacturer of the sole right
to sell goods in a defined market
Legal Sufficiency --> Preexisting Contractual Obligation - Answer Performance of a
preexisting contractual duty is not consideration
-Modification of a Preexisting Contract - under the common law a modification of a preexisting
contract must be supported by mutual consideration; under the Code a contract can be
, -Settlement of a Liquidated Debt- payment of a lesser sum of money to discharge a liquidated
debt (one whose existence or amount is not contested) does not constitute legally sufficient
consideration
-Settlement of an Unliquidated Debt - payment of a lesser sum of money to discharge an
unliquidated debt (one whose existence or amount is contested) is legally sufficient
consideration
Bargained-For Exchange - Answer Definition: a mutually agreed-upon exchange
Past Consideration - an act done before the contract is made is not consideration
Third Parties - consideration may be given to or by a party outside the contract
Contracts Without Consideration - Answer Promises to Perform Prior Unenforceable
Obligations:
-Promise to Pay Debt Barred by Statute of Limitations - a new promise by the debtor to pay the
debt renews the running of the statute for a second statutory period
-Promise to Pay Debt Discharged in Bankruptcy - may be enforceable without consideration
-Voidable Promises - a new promise to perform a voidable obligation that has not been
previously avoided is enforceable
-Moral Obligation - a promise made to satisfy a preexisting moral obligation is generally
unenforceable for lack of consideration
-Promissory Estoppel - doctrine that prohibits a party from denying her promise when the
promisee takes action or forbearance to his detriment reasonably based upon the promise
-Promises Made Under Seal - where still recognized, the seal acts as a substitute for
consideration
with All Accurate Solutions Graded A+
2025-2026 Updated.
Consideration - Answer The inducement to enter into a contract.
Elements: legal sufficiency and bargained-for exchange
Legal Sufficiency (Legal Detriment and/or Legal Benefit) - Answer Consists of either a
detriment to the promise or a benefit to the promisor
Legal Detriment - doing an act one is not legally obligated to do or not doing an act that one has
a legal right to do
Legal Benefit - obtaining something to which one had no prior legal right
Adequacy - not required where the parties have freely agreed to the exchange
Legal Sufficiency --> Illusory Promise - Answer Promise that imposes no obligation on the
promisor; the following promises are not illusory:
-Output Contract - agreement to sell all of one's production to a single buyer
-Requirements Contract - agreement to buy all of one's needs from a single producer
-Exclusive Dealing Contract - grant to a franchisee or licensee by a manufacturer of the sole right
to sell goods in a defined market
Legal Sufficiency --> Preexisting Contractual Obligation - Answer Performance of a
preexisting contractual duty is not consideration
-Modification of a Preexisting Contract - under the common law a modification of a preexisting
contract must be supported by mutual consideration; under the Code a contract can be
, -Settlement of a Liquidated Debt- payment of a lesser sum of money to discharge a liquidated
debt (one whose existence or amount is not contested) does not constitute legally sufficient
consideration
-Settlement of an Unliquidated Debt - payment of a lesser sum of money to discharge an
unliquidated debt (one whose existence or amount is contested) is legally sufficient
consideration
Bargained-For Exchange - Answer Definition: a mutually agreed-upon exchange
Past Consideration - an act done before the contract is made is not consideration
Third Parties - consideration may be given to or by a party outside the contract
Contracts Without Consideration - Answer Promises to Perform Prior Unenforceable
Obligations:
-Promise to Pay Debt Barred by Statute of Limitations - a new promise by the debtor to pay the
debt renews the running of the statute for a second statutory period
-Promise to Pay Debt Discharged in Bankruptcy - may be enforceable without consideration
-Voidable Promises - a new promise to perform a voidable obligation that has not been
previously avoided is enforceable
-Moral Obligation - a promise made to satisfy a preexisting moral obligation is generally
unenforceable for lack of consideration
-Promissory Estoppel - doctrine that prohibits a party from denying her promise when the
promisee takes action or forbearance to his detriment reasonably based upon the promise
-Promises Made Under Seal - where still recognized, the seal acts as a substitute for
consideration
