BCOR 2301 Final Exam Questions With Correct Answers

BCOR 2301 Final Exam Questions With
Correct Answers

Consideration |- |CORRECT |ANSWER✔✔-Value |given |in |return |for |a |promise/performance |in |a |
contract

-2 |parts: |legally |sufficient |value |& |bargained |for |exchange

-Primary |basis |of |enforcement

-common |law

-element |of |valid |contract



Legally |Sufficient |Value |- |CORRECT |ANSWER✔✔-1. |a |promise |to |do |something |that |one |has |no
|prior |legal |duty |to |do



2. |the |performance |of |an |action |that |one |is |otherwise |not |obligated |to |undertake

3. |Forbearance: |the |refraining |from |an |action |that |one |has |a |legal |right |to |undertake



bargained |for |exchange |- |CORRECT |ANSWER✔✔-Must |provide |basis |for |bargain |struck |
between |2 |parties



Adequacy |of |Consideration |- |CORRECT |ANSWER✔✔-Concerns |the |fairness |of |a |bargain

-"how |much" |consideration |is |given

-General |Rule: |Doesn't |depend |on |economic |values |of |things |exchanged



Agreements |lacking |consideration |- |CORRECT |ANSWER✔✔-1. |preexisting |duty

2. |past |consideration

3. |illusory |promises

,Preexisting |duty |- |CORRECT |ANSWER✔✔-Promise |for |one |to |do |something |that |is |already |
legally |required



Past |consideration |- |CORRECT |ANSWER✔✔-Some |action/performance |that |has |already |
happened



Illusory |promises |- |CORRECT |ANSWER✔✔-If |terms |of |contract |express |uncertainty |of |
performance



Settlement |of |claims |(consideration) |- |CORRECT |ANSWER✔✔-3 |types |of |settlement |
agreement:

1) |Accord |& |Satisfaction

2) |Release

3) |Covenant |not |to |sue



Accordance |& |satisfaction |(Consideration |settlement) |- |CORRECT |ANSWER✔✔-Creditor |agrees |
to |accept |a |lesser |amount |than |originally |claimed |to |be |owed

-Debtor |must |offer

-Liquidated |debt: |Debt |amount |is |fixed/agreed |on



Release |(Consideration |settlement) |- |CORRECT |ANSWER✔✔-Party |gives |up |right |to |pursue |
legal |claim |against |another |party



Requirements |for |Release |- |CORRECT |ANSWER✔✔-1) |Agreement |is |made |in |good |faith

2) |Release |contract |is |signed |in |writing

3) |Contract |is |accompanied |by |consideration

, Covenant |Not |to |Sue |(Consideration |settlement) |- |CORRECT |ANSWER✔✔-Substitutes |
contractual |obligation |w/ |type |of |legal |action

-Ex: |Gets |in |car |crash |--> |Agrees |not |to |sue |if |they |pay |for |damages



Promissory |Estoppel |- |CORRECT |ANSWER✔✔-Person |who |reasonably |& |substantially |relied |on |
promise |--> |can |obtain |some |measure |of |recovery



Requirements |for |Promissory |Estoppel |- |CORRECT |ANSWER✔✔-1) |Clear |& |definite

2) |Promisor |expected |that |promisee |would |rely |on |promise

3) |Promisee |reasonably |relied |on |promise |by |acting/refraining |from |some |act

4) |Promisee's |reliance |was |definite |& |resulted |in |substantial |detriment

5) |Enforcement |of |promise |is |necessary |to |avoid |injustice

-All |5 |reqs |met |--> |promise |may |be |enforced |even |thought |its |not |supported |by |consideration



Contractual |Capacity |- |CORRECT |ANSWER✔✔-the |legal |ability |to |enter |into |a |contractual |
relationship

-Req |for |valid |contract



Minors |(Capacity) |- |CORRECT |ANSWER✔✔--Age |of |Majority: |18

-Status |can |be |terminated |upon |marriage/emancipation

-Can |enter |into |any |contract |an |adults |can |(given |no |laws |prohibit |it)

-Reached |age |of |majority--> |can |ratify |expressly |or |implicitly

-Voidable |at |option |of |minor



Disaffirmance |- |CORRECT |ANSWER✔✔-Legal |avoidance |of |contractual |obligation



Disaffirmance |(Minors) |- |CORRECT |ANSWER✔✔--Minor |must |express |intent |not |to |be |bound