Chapter 13 Study Guide Quiz

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Question #1

There can be no satisfaction unless there is first an accord.

A TRUE

B FALSE

Question #2

The element of bargained-for exchange distinguishes contracts from gifts.

A FALSE

B TRUE

Question #3

Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties.

A TRUE

B FALSE

Question #4

In contract law, the term consideration refers to the serious thought that underlies a party’s intent to enter into a contract.

A FALSE

B TRUE

Question #5

For accord and satisfaction to occur, the amount of the debt cannot be in dispute.

A FALSE

B TRUE

Question #6

Even if the terms of a contract express such certainty of performance that the promisor has not definitely promised to do anything, the promise binds the promisor.

A TRUE

B FALSE

Question #7

Essentially, adequacy of consideration concerns the fairness of the bargain.

A FALSE

B TRUE

Question #8

An obligation is enforceable only if it is made in return for actions or events that have already taken place.

A FALSE

B TRUE

Question #9

A release bars any further recovery beyond the terms stated in the release.

A FALSE

B TRUE

Question #10

A court is not likely to allow an exception to the preexisting duty rule even if extraordinary difficulties arise that were totally unforeseen at the time a contract was formed.

A TRUE

B FALSE

Question #11

While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy’s insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is

A enforceable.

B unenforceable because Kilroy has a preexisting duty to pay.

C unenforceable because the release is an illusory promise.

D unenforceable because Jolene’s injuries are unforeseeably difficult.

Question #12

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 pay. Their agreement is

A unenforceable because Bucolic’s promise was illusory.

B unenforceable because Agro’s performance was a preexisting duty.

C unenforceable because its performance is unforeseeably difficult.

D enforceable.

Question #13

Rudy files a suit against Shakes & Shingles, Roofing Contractor, Inc., under the doctrine of promissory estoppel. Rudy must show that

A Shakes & Shingles justifiably relied on his promise to its detriment.

B Shakes & Shingles justifiably refused to fulfill a promise to him.

C he justifiably relied on Shakes & Shingles’ promise to his detriment.

D he justifiably refused to fulfill a promise to Shakes & Shingles.

Question #14

Quentin questions whether there is consideration for his contract with Rainey to exchange his performance with the Symphonic Saxophone Sextet for her payment of a certain amount. To constitute consideration, there must be

A a payment.

B a performance.

C a bargained-for exchange.

D serious thought underlying each party’s intent to contract.

Question #15

Qiana writes a check to Payday Loans, Inc., in an amount that represents half of her debt to the lender. On the back of the check, Qiana includes the words “payment in full.” Payday agrees to accept the lesser sum and cashes the check. This discharges the entire debt

A if the debt is past due.

B if the debt is liquidated.

C under no circumstances.

D if the debt is unliquidated.

Question #16

Produce Packaging Company promises its employees a 10 percent raise at the end of the year if productivity has increased and management feels the raise is warranted. Produce Packaging must

A do nothing.

B give the employees a 10 percent raise only if productivity increases.

C give the employees a 10 percent raise under any circumstances.

D give the employees a 10 percent raise only at the end of the year.

Question #17

Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes for $4.50 per month. Nate accepts. If a dispute arises, a court would likely

A rewrite the deal after questioning the adequacy of the consideration.

B enforce the deal after questioning the adequacy of the consideration.

C set aside the deal after questioning the adequacy of the consideration.

D not question the adequacy of the consideration.

Question #18

Industrial Engineering, Inc., promises to give stock options to Jasmine for processes she has already designed for the firm. This promise is enforceable

A because it is supported by past consideration.

B because it is a new contract.

C because it is an illusory promise.

D under no circumstances.

Question #19

Henry promises not to open his Hank’s Lunchbox Café before 10:00 A.M. if Isis, who owns Isis’s Danish & Donuts next door, promises to close by 4:00 P.M. Henry’s consideration is

A the destruction of a legal relationship.

B an exchange of money.

C the creation of a legal relationship.

D a forbearance.

Question #20

Gustaf and Hilltop Country Club disagree as to the exact amount Hilltop owes Gustaf for his landscaping work. They form a new agreement that, on fulfillment, will discharge the prior obligation. This is

A a release.

B a covenant not to sue.

C promissory estoppel.

D an accord and satisfaction.

Question #21

Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale Distributors. When Genovese runs into the types of difficulties that contractors ordinarily confront, Hawthorne agrees to pay extra compensation to overcome them. Regarding the agreement to pay more, a court would likely

A enforce it.

B order the parties to renegotiate it.

C not enforce it.

D rescind it.

Question #22

Esmeralda promises to pay Fiorello $400 because “he does not have as much money as other people.” Esmeralda’s promise is not enforceable because

A Esmeralda could have paid more.

B society does not want gifts cheapened by making them legally enforceable.

C Fiorello has not given consideration in return.

D the redistribution of wealth on a one-to-one basis is not a valid social goal.

Question #23

Dave’s uncle tells Dave that if “he feels that Dave deserves it,” he will give Dave $10,000 when Dave graduates from college. Dave’s uncle’s promise is

A a preexisting duty.

B illusory.

C a contract.

D a forbearance.

Question #24

Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse. Dex completes the installation. The act of installing the pump

A imposes no obligation on Chicken & Egg unless it is satisfied with the job.

B is the consideration that creates Chicken & Egg’s obligation to pay Dex.

C is not sufficient consideration because it is not goods or money.

D imposes a moral obligation on Chicken & Egg to pay Dex.

Question #25

Apples & Pears Orchards contracts to hire Brigit for one year to tend the fruit in its commercial orchards but reserves the right to cancel the employment on thirty days’ notice at any time after Brigit begins work. This promise is

A illusory.

B enforceable.

C unforeseen.

D unliquidated.

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Chapter 13 Study Guide Quiz

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