Consideration

Question 1

requires consideration to be binding on the parties

Answer 1

A real estate contract cannot be modified unless additional or new consideration is given. Only UCC contracts for the sale of goods can be modified without new consideration

Question 2

consideration requirement to form a contract has been satisfied, the consideration exchanged by the parties to the contract must be

Answer 2

legally sufficient, not reasonable under circumstances

Question 3

John borrows $100 from Jim to be paid back without interest. John sends a check to Jim for $95 marked clearly “payment in full.” Even if Jim cashes the check with knowledge of the notation, in the majority of states Jim can sue and collect the remaining $5.

Answer 3

True

Question 4

Modify Common Law vs UCC–> new consideration?

Answer 4

The modification of a COMMON LAW contract requires additional consideration on BOTH sides; otherwise, the modification is not a valid contract because it is missing the required element of consideration.