True/False
Indicate whether the sentence or statement is true
or false.
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1.
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Consideration is the value given in return for a promise.
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2.
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For
consideration to have "legally sufficient value," it does not have to consist of goods or
money.
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3.
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A
promise by one party to pay another for refraining from an act is enforceable.
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4.
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Use
of the word consideration in an agreement means that consideration has been
given.
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5.
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A
transaction that lacks a bargained-for exchange will always be upheld if the parties consented to
it.
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6.
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Parties are not generally free to bargain as they wish.
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7.
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Inadequate consideration may indicate fraud, duress, or undue influence.
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8.
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Normally, a court of law will not question the adequacy of consideration if the
consideration is legally sufficient.
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9.
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The
preexisting duty rule permits a party who is bound by contract to perform a certain duty to use that
duty as consideration for a second contract.
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10.
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The
courts sometimes allow exceptions to the preexisting duty rule.
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11.
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Two
parties can mutually agree to rescind a contract unless it is executory.
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12.
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A
later promise to do what one already has a legal duty to do is legally sufficient
consideration.
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13.
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A
promise to pay for an act that has already occurred is enforceable.
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14.
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An
illusory promise is a promise that is enforceable without consideration.
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15.
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A
contract that one party retains the exclusive right to cancel at any time is
unenforceable.
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16.
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Cashing a check in an amount for less than a balance owed and on which the debtor has
written "payment in full" never bars a dispute over the amount.
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17.
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No
state requires a release to be in writing.
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18.
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A
covenant not to sue does not always bar further recovery.
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19.
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The
doctrine of promissory estoppel requires a clear and definite promise.
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20.
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A
businessperson who sells a business in reliance on promises by another is not entitled to
damages under the doctrine of promissory estoppel.
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