Business Law Ch 12 Part II Question Preview (ID: 23988)


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Jen questions whether there is consideration for her contract with Isaac to exchange her catering services for his payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be
a) legally sufficient
b) objectively worthy
c) grossly inadequate
d) practically sound

Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the “cost of doing business.” Bucolic agrees but later refuses to
a) unenforceable because Agro’s performance was a preexisting duty.
b) unenforceable because Bucolic’s promise was illusory.
c) enforceable.
d) unenforceable because its performance is unforeseeably difficult.

(CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay. If CCC offers no reason for the extra cash, but says that it will otherwise stop construction, the agreement is
a) unenforceable due to the preexisting duty rule.
b) enforceable as an accord and satisfaction.
c) enforceable because of unforeseen difficulties.
d) unenforceable as an illusory promise.

If CCC offers, as a reason for the extra $100,000, that ordinary business expenses have increased, the agree¬ment is
a) unenforceable due to the preexisting duty rule
b) enforceable as an accord and satisfaction
c) enforceable because of unforeseen difficulities
d) unenforceable as an illusory promise

If CCC offers, as a reason for the extra $100,000, that extraordinary unforeseen difficulties will add consid¬erable cost to the project, the agreement is
a) enforceable because of unforeseen difficulties
b) enforceable as an accord and satisfaction.
c) unenforceable as an illusory promise.
d) unenforceable due to the preexisting duty rule.

Homebuyers Mortgage Corporation’s promise to pay its employees a year-end bonus “if it seems like a good idea at the time” is
a) an illusory promise
b) an enforceable contract
c) an unconscionable proviso
d) a unilateral pact

Herm promises to pay Nixie to work as an assistant buyer for his Organic Foods stores. Nixie agrees and quits her job with Pic-U Grocery, but Herm does not hire her. Herm is most likely liable to Nixie under
a) the doctrine of promissory estoppel.
b) the concept of accord and satisfaction.
c) the preexisting duty rule.
d) no circumstances.

Cherry is injured in an accident caused by Bronco. Bronco agrees to pay Cherry $2,500 if she agrees to release him from further liability. Cherry agrees. If Cherry’s damages ultimately exceed $2,500, she can
a) not collect the balance from Bronco.
b) collect the balance from Bronco in a breach-of-contract suit.
c) collect the balance from Bronco in a tort suit.
d) collect the balance from Bronco on the ground of unforeseen events.

Berkie’s bicycle is damaged in an accident caused by Imogene. Berkie agrees not to sue Imogene if she will pay for the damage. If she fails to pay, Berkie can bring an action for breach of contract. This is
a) a covenant not to sue.
b) an accord and satisfaction
c) an illusory promise
d) a release

Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based on
a) promissory estoppel
b) an illusory promise
c) a release
d) past consideration

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