Test Bank Ch 12 Exam Questions and
Answers
A new promise to perform a voidable obligation that has not been avoided previously is
enforceable without new consideration. - Answer-True
In some states a promise under seal is binding without consideration. - Answer-True
Past actions un-bargained for by the parties in an agreement can become valid
consideration for a contract. - Answer-False
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. - Answer-False
In most, if not all, cases where there is a legal detriment to the promise, there is also a
legal benefit to the promisor. - Answer-True
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. - Answer-True
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. - Answer-True
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. - Answer-False
A modification of a contract for the sale of goods must always be supported by
additional consideration - Answer-False
The parties to a contract may modify the agreement with no additional consideration by
simply substituting a new contract. - Answer-True
Contracts generally require adequacy of consideration where the consideration given by
both parties is of fair value and equitable. - Answer-False
In a unilateral contract, a promise is exchanged for an act or forbearance to act. -
Answer-True
Answers
A new promise to perform a voidable obligation that has not been avoided previously is
enforceable without new consideration. - Answer-True
In some states a promise under seal is binding without consideration. - Answer-True
Past actions un-bargained for by the parties in an agreement can become valid
consideration for a contract. - Answer-False
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. - Answer-False
In most, if not all, cases where there is a legal detriment to the promise, there is also a
legal benefit to the promisor. - Answer-True
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. - Answer-True
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. - Answer-True
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. - Answer-False
A modification of a contract for the sale of goods must always be supported by
additional consideration - Answer-False
The parties to a contract may modify the agreement with no additional consideration by
simply substituting a new contract. - Answer-True
Contracts generally require adequacy of consideration where the consideration given by
both parties is of fair value and equitable. - Answer-False
In a unilateral contract, a promise is exchanged for an act or forbearance to act. -
Answer-True
