True/False
Indicate whether the
statement is true or false.
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1.
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In contract law, "consideration" refers to the time that a party takes
to evaluate a deal.
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2.
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If a promise is made, it will be enforced.
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3.
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To be legally sufficient, consideration must include something of economic
value.
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4.
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A promise to do something that one has a prior legal duty to do is not
consideration.
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5.
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Failing to use the word consideration in an agreement means that no
consideration has been given.
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6.
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A bargained-for exchange is one of the elements of consideration.
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7.
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Inadequate consideration may reflect a lack of bargained-for exchange.
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8.
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Unforeseen difficulties that justify a demand for additional compensation
include risks ordinarily assumed in business.
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9.
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Extraordinary difficulties that were unforeseen at the time a contract was
formed do not justify a demand for additional compensation.
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10.
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Rescission is the substitution of one party to a contract for a third party, who
agrees to assume the contractual duties.
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11.
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An obligation is enforceable only if it is supported by past
consideration.
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12.
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Any promise made with respect to a past event is enforceable because the event
is certain--it has already occurred.
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13.
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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" will discharge a liquidated debt.
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14.
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A release is a contract in which one party forfeits the right to pursue a legal
claim against another.
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15.
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An accord and satisfaction is used to discharge a liquidated debt.
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16.
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In most states, a release requires a signed writing.
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17.
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A covenant not to sue is the substitution of a contractual obligation for a
legal action.
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18.
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Promises to pay debts barred by a statute of limitations are not enforceable due
to the absence of consideration.
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19.
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Promissory estoppel requires reliance of a substantial and definite
character.
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20.
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Under the doctrine of promissory estoppel, every gratuitous promise is binding
if the promisee changes position in reliance on the promise.
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