Consideration- Module 3 of 5

Question 1

Bob promises his son $500.00 if he refrains from riding a motorcycle until he reaches the age of 21. Is this valid consideration?

a. Yes because forbearance of a legal right can be valid consideration

b. No because forbearance of a legal right cannot be valid consideration

c. No because riding or not riding a motorcycle cannot be consideration

d. None of the above

Question 2

As a condition of employment, Sally was required to sign an arbitration agreement. Under the agreement her employer could change, delete, modify, or add to the arbitration agreement at any time. Is this valid consideration?

a. Yes because Sally signed the agreement in exchange for her opportunity for employment

b. No because it is an illusory promise

c. Yes because it is an illusory promise

d. None of the above

Question 3

Kyle promises to mow his parent’s lawn. His parents promise to pay him one hundred dollars. Is this valid consideration?

a. No, the promises are not mutual

b. No, because Kyle has not performed

c. Yes, they are mutual promises

d. Yes, if Kyle begins performance

Question 4

Requirement contracts and output contracts are:

a. Generally invalid because they lack a definite promise

b. Generally valid although they lack a definite promise

c. Generally valid because they are sufficiently definite

d. Generally invalid because there is no consideration

Question 5

If a customer marks a check paid in full, but the amount owed is larger than what the customer has paid, are they still obligated to pay the outstanding balance?

a. Yes pursuant to the partial payment rule

b. No pursuant to the partial payment rule

c. Yes under promissory estoppel

d. No under promissory estoppel

Question 6

John offers to buy Brianna’s luxury vehicle for $50.00. Is $50.00 valid consideration?

a. No because it is too small of an amount for a luxury vehicle

b. No because consideration cannot be monetary

c. Yes because courts will not consider whether the parties made a good bargain

d. Yes because consideration can only be monetary

Question 7

In a requirement contract the seller:

a. Promises to sell all the goods in any quantity that the buyer may require

b. Promises to sell a specific amount of goods in advance

c. Agree to the seller’s contractual terms as required

d. None of the above

Question 8

In an output contract:

a. The seller promises to sell all the goods in any quantity that the buyer may require

b. The buyer promises to purchase everything the seller can produce

c. The buyer promises to purchase a specific amount of goods in advance

d. None of the above

Question 9

The school district contracted with certain teachers to work for a set amount of money for each school year. The teachers all go on strike demanding to be paid a higher salary. If the school district agrees, is the contract enforceable?

a. No because consideration cannot be something a party is already legally bound or obligated to perform under the legal duty rule

b. Yes because this is valid consideration under the legal duty rule

c. No because the contract was fraudulent

d. None of the above

Question 10

Kyle becomes very sick at school and is rushed to the hospital. The hospital cures Kyle of a deadly disease that would have killed Kyle. Kyle’s father, overcome with thankfulness, says he will pay the doctor for Kyle’s treatment. Is this a valid contract?

a. No because there was no present consideration

b. Yes because consideration does not have to be monetary

c. Yes because Kyle’s father received a material benefit and the promise is to compensate the promisee for the benefit conferred

d. None of the above