BUS 311 Week 2 Quiz Chapter 009in Business (Education) by RD777DR
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BUS 311 Week 2 Quiz Chapter 009
- Consideration in a contract may be more than just the promises exchanged by the parties, but the actual benefit gained and the detriment suffered by them.
- The promisor may make a promise to pay a sum of money to the promisee for the performance of a certain act.
- A valid contract may exist even if the consideration is a promise to perform an illegal act, or to avoid performing an act that is legally required to be performed.
- In general, courts do not attempt to judge the adequacy of consideration.
- Sometimes the unequal bargaining power of parties to a contract gives one party an unfair advantage when dealing with those who lack the economic power to enter into a contract on an equal footing.
- Contracts in which the parties have unequal bargaining power are known as unconscionable contracts.
- Consideration required in an enforceable contract can take various forms such as exchange of promises, forbearance, and pledges or subscriptions.
- The most common form of valid consideration is the promise of money by one party for the promise of an act by another.
- The exchange of money is a mandatory requirement for a consideration.
- Many contracts in which part of the consideration is forbearance involve agreements to compete.
- If the consideration of not to compete is lacking in an agreement, then the contract is unenforceable.
- A pledge or a subscription, which is a promise to donate money, is unenforceable.
- With regard to pledges and subscriptions, some courts have held that the consideration given by a charitable institution is the promise to use the money for the purpose for which it was donated.
- The Uniform Commercial Code dispenses with the requirement of consideration in certain contracts that involve a merchant's written firm offer that provides that the contract is irrevocable.
- Statutes, in some states, have permitted a person who has a claim against another to give up, or release, his or her claim without an exchange of consideration by making a written statement to that effect.
- Contracts based on moral consideration are generally enforceable.
- Past consideration is a promise to repay someone for a benefit before it has been received.
- The promises exchanged by the parties to a contract, either to give up something of value they have a legal right to keep, such as money or property; to do something they are not otherwise legally required to do, such as performing a service; or to refrain from an action is known as:
A. competence of parties.
B. offer and acceptance.
C. mutual agreement.
- The promise to refrain from doing something that a party has a legal right to do, or the promise of inaction, is known as:
C. general release.
D. pledge or subscription.
- Jack promised to pay his nineteen year-old nephew $300 on his twenty-second birthday if he refrained from smoking cigarettes until he graduated from Western State College. This contract is legal and illustrates the promise of:
A. pledge or subscription.
B. forbearance as consideration.
C. general release.
D. implied contract.
- The three essential characteristics of valid consideration are:
A. accuracy, brevity, and clarity.
B. fulfillment of social, moral and ethical obligations.
C. legality, adequacy, and the possibility of performance.
D. intention, practices, and policies.
- A valid contract does not exist if the contract is a promise of/to:
B. provide services.
D. perform an illegal act.
- A contract will not be enforced if it:
A. is impossible to fulfill.
B. is inconvenient to fulfill.
C. is difficult to fulfill.
D. poses unforeseen expenses.
- The law assumes that, as long as no undue pressure is brought to bear, the parties were:
A. free to reject a proposed unfair contract.
B. not allowed to enter into another contract.
C. bound compulsorily by all the terms of a contracts.
D. free to perform an illegal act.
- A party who promises to do something that is merely difficult to perform, or poses unforeseen expenses, is:
A. bound by the tort law.
B. bound by the terms of the contract.
C. not bound by the terms of the contract.
D. bound by administrative rules and regulations.
- The most common form of valid consideration is:
A. the promise of money by one party for the promise of an act by another.
B. the promise of an act by one party for the promise of refraining from trade by the other party.
C. the promise of money by one party for the promise of restraining oneself from competitive trade by another.
D. the promise of an act by one party in exchange for a different act by another.
- A promise of an act by one party in exchange for the promise of an act by another is also considered a:
A. void contract.
B. valid offer and acceptance.
C. valid consideration.
D. voidable contract.
- Charitable organizations frequently raise money by asking for:
- With respect to pledges and subscriptions, courts have generally held that these promises are:
C. enforceable only in cases involving amounts greater than $500.
D. unenforceable if it is not made for a reasonable period of time.
- The Uniform Commercial Code dispenses with the requirement for consideration in contracts that involve:
A. a merchant's firm written offer of the irrevocable contract.
B. an oral discharge of a claim for an alleged breach of contract.
C. modifications on future contracts.
D. modifications to executed contracts.
- The UCC provides that "any claim or right arising out of an alleged breach can be discharged in whole or in part without consideration by a written waiver or renunciation signed and delivered by the aggrieved party." This is stated under:
A. UCC 1-107.
B. UCC 1-109.
C. UCC 2-107.
D. UCC 2-109.
- Statutes in many states have permitted a person who has a claim against another to give up, or release, his or her claim without an exchange of consideration by making a:
A. written statement to that effect.
B. soliloquy to that effect.
C. release to that effect.
D. complaint to that effect.
- The agreements which lack consideration are:
B. not enforceable.
- A promise to do something that one is already required to do either by law or by contract represents no additional sacrifice and is:
A. a general release.
B. an illegal act.
C. not a valid consideration.
- A promise to pay an existing debt or to obey the law, or a similar promise, is called a:
B. gratuitous promise.
C. preexisting duty.
D. barren promise.
- A barren promise is one that involves a promise:
A. to do something one is already required to do.
B. to perform an illegal act.
C. to perform an act that involves an unreasonable period of time.
D. that cannot be performed.
- The obligation to perform acts already required is known as a:
A. pious obligation.
B. preexisting duty.
C. social obligation.
D. contractual duty.
- The obligation to perform something that is already required of a person to perform is known as:
A. preordained duty.
B. precarious duty.
C. preexisting duty.
D. dysfunctional duty.
- A person who makes a promise without requiring some benefit in return has made a:
A. gratuitous promise.
B. barren promise.
C. pledge or subscription.
D. onerous contract.
- Courts may justify the enforcement of some contracts, even though there is no consideration, by stating that there was:
A. monetary consideration.
B. moral consideration.
C. pecuniary consideration.
D. fiscal consideration.
- A promise to repay someone for a benefit after it has been received is known as:
A. pre-ordained contract.
B. pre-meditated contract.
C. prior consideration.
D. past consideration.
- A __ is a promise that is generally not a valid consideration and is considered a gratuitous promise, except in cases of moral consideration.
A. gratuitous promise
B. past consideration
C. barren promise
D. onerous contract