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Exam 15: Consideration

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Question 51

True/False

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Partial payment of a debt is never valid consideration.

A) True
B) False

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Question 52

Multiple Choice

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Sameer promises his uncle,Farouk,that he will study every day and earn straight A's during the spring semester in exchange for having his tuition paid for the fall semester.Farouk agrees,but after Sameer studies all semester and receives straight A's,Farouk refuses to pay,saying that no such contract ever existed.Which of the following is true?

A) There was no consideration present,but Farouk must pay under principles of promissory estoppels.
B) There was no consideration present,and Farouk has no obligation to pay.
C) Consideration was present,there was an enforceable contract,and Farouk has wrongfully refused to pay.
D) There was consideration present,but Farouk is not required to pay because he did not receive a benefit personally.
E) There was consideration present,but Farouk is not required to pay because the contract was illusory.

F) A) and C)
G) B) and C)

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Question 53

Multiple Choice

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In return for his oral promise to pay her $100,Emma promises her uncle that she will not violate laws against speeding for one year.Emma abides by her promise,but her uncle refuses to pay.Which of the following is true regarding whether Emma is entitled to the money?

[Debt Trouble] Isabella has significant credit card debt following a semester abroad in Italy.Her tuition and living expenses had ended up costing more than she had anticipated.Isabella recently took a business law class and thought that she might be able to find a way out of her troubles.She owed $2,000 to Credit Card Company A and $3,000 to Credit Card Company B.She also owed $2,000 to the local Italian university for tuition and book expenses.Isabella is in negotiations with the university over the amount owed because one of the classes she had originally enrolled in was cancelled halfway through the semester.While the cancellation of that class did not significantly affect her academic career,Isabella thought that she should get at least some deduction on the overall tuition bill.Isabella called Credit Card Company A and told them that she was a student and could not afford to pay the entire $3,000 she owed.The representative of Credit Card Company A,who was working her last day,told Isabella just to pay $50,and that would be considered payment in full.The representative sent Isabella an e-mail to that effect.Isabella was very pleased and immediately quit her job at the campus bookstore,believing that with the reduction from Credit Card Company A,she would have a sufficient amount of extra money.Isabella then called Credit Card Company B and once again pled her case as a student.She talked Credit Card Company B into taking a used car with a blown-up engine worth around $1,000 in exchange for the debt.Transfer details regarding the car were worked out through e-mail.Finally,Isabella sent the university a check for $1,000 marked "paid in full." Much to her surprise and pleasure,the university did indeed cash the check.Isabella,however,was distraught to find that within 30 days,Credit Card Company A sent her a bill for $1,950,Credit Card Company B sent her a bill for $3,000,and the university sent her a check for $1,000 along with a bill for $2,000.Faced with all these claims,Isabella decided to look for work,and ended up finding work she enjoyed as a translator.Assume all credit card company representatives had authority to make the agreements at issue. -What is Credit Card Company A's best argument in relation to enforcing Isabella's obligations?

What is necessary for consideration to be valid?

An illusory promise is not consideration.

In a unilateral contract,the consideration for a promise is a[n] .

Jun is building a home for Tessa that is to be completed by December 31st.Jun tells Tessa that he needs to hire additional workers in order to have the home done by that time and that she needs to pay him an extra $10,000.Tessa agrees to pay.Jun finishes the home and asks for his $10,000.Tessa refuses to pay.If Jun sues,what is the likely result? Discuss whether you believe the result is ethical and equitable.

Upon graduating from college,Anum receives a job offer across the country and moves there,giving up her apartment and cancelling all her other job interviews in the process.After she arrives,she is informed that there is no job.In most states,what may she recover?

In a bilateral contract,the consideration for each promise is ________.