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Question 1
Tony is an old man who has lived in the same house for forty years. Cornelius, an eighteen-year-old high school senior, and his family have lived next door to Tony since Cornelius was two years old. Tony has watched Cornelius grow up and, over the years, he has developed a special affection for Cornelius. Tony knows that Cornelius has been saving to buy a car and, a week before Cornelius graduates from high school, Tony promises Cornelius that he will give him $10,000 as a graduation present. A few days after graduation, Tony dies and his estate refuses to give Cornelius the $10,000 that Tony promised him. If Cornelius sues Tony's estate for the money, he will:
Correct
Incorrect!
Correct
Incorrect!
Correct Unfortunately for Cornelius, while Tony's gesture was very nice, it was also unenforceable. When Tony made the promise to give Cornelius the money, he did not receive any consideration in return. Further, Cornelius did not rely on the promise. As such, Tony's estate does not have to give Cornelius the money that Tony promised him and C is the correct answer.
Incorrect! Unfortunately for Cornelius, while Tony's gesture was very nice, it was also unenforceable. When Tony made the promise to give Cornelius the money, he did not receive any consideration in return. Further, Cornelius did not rely on the promise. As such, Tony's estate does not have to give Cornelius the money that Tony promised him and C is the correct answer.
Correct
Incorrect!
Question 2
Tony is an old man who has lived in the same house for forty years. Cornelius, an eighteen-year-old high school senior, and his family have lived next door to Tony since Cornelius was two years old. Tony has watched Cornelius grow up and, over the years, he has developed a special affection for Cornelius. Tony knows that Cornelius has been saving to buy a car and, a week before Cornelius graduates from high school, Tony promises Cornelius that he will give him $10,000 as a graduation present. Immediately after Tony makes his promise, Cornelius goes to a local Ford dealership and makes a down payment on a new Thunderbird. A few days after graduation, Tony dies and his estate refuses to give Cornelius the $10,000 that Tony promised him. If Cornelius sues Tony's estate for the money, he will:
Correct Although Tony did not receive any consideration in return for his promise, Cornelius did rely on the promise and reliance on a promise will make a promise with no consideration enforceable anyway. That being the case, Tony's estate will have to give the $10,000 to Cornelius and A is the correct answer.
Incorrect! Although Tony did not receive any consideration in return for his promise, Cornelius did rely on the promise and reliance on a promise will make a promise with no consideration enforceable anyway. That being the case, Tony's estate will have to give the $10,000 to Cornelius and A is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 3
Truman has just graduated from the ParalegalTech Institute and has landed a job at one of the most prestigious law firms in Los Angeles. Truman is a television addict and, with some of his first paycheck, he goes out and replaces his thirty four inch color television with a sixty four inch plasma screen color television. Truman calls his friend Ed and tells him that he can have his old TV if he comes over to Truman's apartment and picks it up. When Ed arrives at Truman's house, Truman refuses to give Ed the TV. Ed sues Truman, arguing that Truman set out a condition for the promise and Ed fulfilled it and so Truman is required to give him the television. Ed will win this case:
Correct
Incorrect!
Correct Although a conditional donative promise sometimes looks like a bargain, a conditional donative promise is no more enforceable than any unrelied upon donative promise. This is true even if the condition has been fulfilled. The difference between an unenforceable conditional promise and an enforceable bargain is that, in a conditional donative promise, fulfillment of the condition is not the price the promisee has to pay for the promisor's performance whereas, for a bargain promise, fulfillment of the condition is the price the promisee has to pay for the promisor's performance. The test is how the parties view the condition. In this case, the condition that Truman set was simply a necessary part of making the gift. Therefore, the promise he made to Ed is donative and unenforceable. That being the case, Ed will lose this case and FALSE is the correct answer.
Incorrect! Although a conditional donative promise sometimes looks like a bargain, a conditional donative promise is no more enforceable than any unrelied upon donative promise. This is true even if the condition has been fulfilled. The difference between an unenforceable conditional promise and an enforceable bargain is that, in a conditional donative promise, fulfillment of the condition is not the price the promisee has to pay for the promisor's performance whereas, for a bargain promise, fulfillment of the condition is the price the promisee has to pay for the promisor's performance. The test is how the parties view the condition. In this case, the condition that Truman set was simply a necessary part of making the gift. Therefore, the promise he made to Ed is donative and unenforceable. That being the case, Ed will lose this case and FALSE is the correct answer.
Question 4
Truman is about to move into a new apartment. Unfortunately, his new apartment is smaller than his old apartment and it will not be able to accommodate his sixty-four inch color television. Truman had tried to sell the T.V. but nobody is willing to buy it. Truman calls his friend Ed and tells Ed that he has to get rid of his television before he moves and, if Ed were to come pick the TV up and take it off of Truman's hands, Ed could have the TV. When Ed arrives at Truman's house, Truman refuses to give Ed the TV. Ed sues Truman, arguing that Truman set out a condition for the promise and Ed fulfilled it and so Truman is required to give him the television. Ed will win this case:
Correct Although a conditional donative promise sometimes looks like a bargain, a conditional donative promise is no more enforceable than any unrelied upon donative promise. This is true even if the condition has been fulfilled. The difference between an unenforceable conditional promise and an enforceable bargain is that, in a conditional donative promise, fulfillment of the condition is not the price the promisee has to pay for the promisor's performance whereas, for a bargain promise, fulfillment of the condition is the price the promisee has to pay for the promisor's performance. The test is how the parties view the condition. In this case, the condition that Truman set was established as the actual price of the gift. Therefore, Ed and Truman have an enforceable bargain and TRUE is the correct answer.
Incorrect! Although a conditional donative promise sometimes looks like a bargain, a conditional donative promise is no more enforceable than any unrelied upon donative promise. This is true even if the condition has been fulfilled. The difference between an unenforceable conditional promise and an enforceable bargain is that, in a conditional donative promise, fulfillment of the condition is not the price the promisee has to pay for the promisor's performance whereas, for a bargain promise, fulfillment of the condition is the price the promisee has to pay for the promisor's performance. The test is how the parties view the condition. In this case, the condition that Truman set was established as the actual price of the gift. Therefore, Ed and Truman have an enforceable bargain and TRUE is the correct answer.
Correct
Incorrect!
Question 5
Tony is an old man who has lived in the same house for forty years. Cornelius, an eighteen-year-old high school senior, and his family have lived next door to Tony since Cornelius was two years old. Tony has watched Cornelius grow up and, over the years, he has developed a special affection for Cornelius. Tony knows that Cornelius has been saving to buy a car and, a week before Cornelius graduates from high school, Tony promises Cornelius that he will give him $10,000 as a graduation present. Immediately after Tony makes his promise, Cornelius goes to a local Ford dealership and buys a new Thunderbird. The car is valued at $9,000 but the dealer, who is having a clearance sale, gives Cornelius the car for $8,000. A few days after graduation, Tony dies and his estate refuses to give Cornelius the $10,000 that Tony promised him. If Cornelius sues Tony's estate for the money and the court that hears the case applies the Restatement First's rule of promissory estoppel, Cornelius will:
Correct
Incorrect!
Correct
Incorrect!
Correct The rule regarding promissory estoppel says that, if a donative promise is relied on by the promisee in a manner that the promisor should reasonably have expected, the promise will be legally enforceable, at least to the extent of the reliance. This rule is laid out in section 90 of both the First and Second Restatements of the laws of contracts. As far as damages for breach where an enforceable donative promise are concerned, the First Restatement of Contract Law says that if a relied upon donative promise is enforceable, it is enforceable to its full extent. In other words, the promisor will have to give the promisee what he promised. That being the case, since Cornelius relied on the promise in a foreseeable manner, Tony's promise is enforceable and the estate will have to give Cornelius the $10,000, even though he only spent $8,000 in reliance on the promise.
Incorrect! The rule regarding promissory estoppel says that, if a donative promise is relied on by the promisee in a manner that the promisor should reasonably have expected, the promise will be legally enforceable, at least to the extent of the reliance. This rule is laid out in section 90 of both the First and Second Restatements of the laws of contracts. As far as damages for breach where an enforceable donative promise are concerned, the First Restatement of Contract Law says that if a relied upon donative promise is enforceable, it is enforceable to its full extent. In other words, the promisor will have to give the promisee what he promised. That being the case, since Cornelius relied on the promise in a foreseeable manner, Tony's promise is enforceable and the estate will have to give Cornelius the $10,000, even though he only spent $8,000 in reliance on the promise.
Correct
Incorrect!
Question 6
Tony is an old man who has lived in the same house for forty years. Cornelius, an eighteen-year-old high school senior, and his family have lived next door to Tony since Cornelius was two years old. Tony has watched Cornelius grow up and, over the years, he has developed a special affection for Cornelius. Tony knows that Cornelius has been saving to buy a car and, a week before Cornelius graduates from high school, Tony promises Cornelius that he will give him $10,000 as a graduation present. Immediately after Tony makes his promise, Cornelius goes to a local Ford dealership and buys a new Thunderbird. The car is valued at $9,000 but the dealer, who is having a clearance sale, gives Cornelius the car for $8,000. A few days after graduation, Tony dies and his estate refuses to give Cornelius the $10,000 that Tony promised him. If Cornelius sues Tony's estate for the money and the court that hears the case applies the Restatement Second's rule of promissory estoppel, Cornelius will:
Correct The rule regarding promissory estopple says that, if a donative promise is relied on by the promisee in a manner that the promisor should reasonably have expected, the promise will be legally enforceable, at least to the extent of the reliance. This rule is laid out in section 90 of both the First and Second Restatements of the laws of contracts. As far as damages for breach where an enforceable donative promise are concerned, the Second Restatement of Contract Law says that if a relied upon donative promise is enforceable, it is enforceable but only to the extent that justice requires. In other words, the promisor will have to keep his promise but only to the extent that the promisee relied on the promise. That being the case, since Cornelius relied on the promise in a foreseeable manner, Tony's promise is enforceable but the estate will only have to give Cornelius the $8,000. He spent $8,000 in reliance on the promise and not the full $10,000 that was initially promised.
Incorrect! The rule regarding promissory estopple says that, if a donative promise is relied on by the promisee in a manner that the promisor should reasonably have expected, the promise will be legally enforceable, at least to the extent of the reliance. This rule is laid out in section 90 of both the First and Second Restatements of the laws of contracts. As far as damages for breach where an enforceable donative promise are concerned, the Second Restatement of Contract Law says that if a relied upon donative promise is enforceable, it is enforceable but only to the extent that justice requires. In other words, the promisor will have to keep his promise but only to the extent that the promisee relied on the promise. That being the case, since Cornelius relied on the promise in a foreseeable manner, Tony's promise is enforceable but the estate will only have to give Cornelius the $8,000. He spent $8,000 in reliance on the promise and not the full $10,000 that was initially promised.