Chapter 8 Review

Question 1

Three most important element in forming a contract is

Answer 1

Offer
Agreement
Consideration

Question 2

Consideration is

Answer 2

Something of legal value that each party gives to the contract.

Question 3

Promiser

Answer 3

Creating the promises

Question 4

Promisee

Answer 4

to whom the promise is made too

Question 5

Gift

Answer 5

Voluntary transfer of property w/o consideration

Question 6

legal detriment

Answer 6

sacrifice of offeree

Question 7

What are the sacrifices of an offeree

Answer 7

1. Does an act or promise their not legally obligated to do

2. Refraining from doing something their legally obligated to do

Question 8

What is the Adequacy of Consideration

Answer 8

To protect individuals from contract that favors one sode more and is considered unfair

Question 9

Nominal Consideration

Answer 9

dollar or other small amount of money used to bind a contract

Question 10

Moral Consideration

Answer 10

makes a promise because they feel it’s the right thing to do

Question 11

Past Consideration

Answer 11

promise made for an act that has already taken place

Question 12

What are some problems to considerations

Answer 12

1. pre-existing contract agreements
   2.pre-existing duty to pay debt
   3,pre-existing obligation to perform an legal obilgations

Question 13

Liquidated Claim

Answer 13

debt in an amount that CANT be disputed

Question 14

Unliquidated Claim

Answer 14

debt amount that can be disputed

Question 15

Composition of creditors

Answer 15

agreement among creditors to accept an % of total owed in full settlement of debt.

Question 16

Consideration is needed to make a promise legal

True or False

Answer 16

True

Question 17

A promise to make a gift is enforceable in a court of law

True or False

Answer 17

False

Question 18

A promise to refrain from doing something that the law requires is consideration
True or False

Answer 18

False

Question 19

Forbearance is a promise to do something you are not legally required to do.
True or False

Answer 19

False

Question 20

pledge

Answer 20

promise to make a gift charitable, religious and educational instiution

Question 21

promissonary estoppel

Answer 21

equity applied to the courts if a promise is unsupported by consideration

Question 22

Promises made to charitable organizations that depends upon voluntary contributions are generally enforceable without consideration
True or False

Answer 22

True

Question 23

As creditors promise to accept less than the amount owed as full payment of a debt is legally binding
True or False

Answer 23

False

Question 24

Part payment of a debt may cancel the entire debt if there is an honest dispute over the exact amount of debt True or False

Answer 24

True

Question 25

A debtor who makes a part payment of the debt before the due date is no longer liable for the balance
True or False

Answer 25

True

Question 26

A liquidated debt is one that is not in dispute.

True or False

Answer 26

True