Business Law
Chapter 8 Chapter questions 1,2,3,5,6,7,10
1. When does a promise constitute consideration?
For a promise to constitute consideration, the promise must impose an obligation on the person making it.
2. May a promise that is conditional constitute consideration?
Yes, such a promise consideration even if the condition is unlikely to occur.
3. What is the general rule about the adequacy of consideration?
The adequacy of the consideration is irrelevant because the law does not prohibit bargains.
5. Is there consideration when a secured note for a lesser amount is given and accepted in discharge of an unsecured note for a greater amount? Explain.
No, because if a secured not for a lesser amount is given and accepted in discharge of an unsecured note for a greater amount, the difference between the two notes is discharged. The security is the consideration to support the contract to settle for a lesser sum.
6. George agrees to remodel a kitchen for Harry for $30,000 but after beginning work asked Harry to pay $34,000. Can George enforce Harry’s new promise to pay $4000?
No, for the new contract to be enforceable there must be some added features that benefit both parties, although not necessarily to an equal extent.
7. If a boy promises his father that he will not own and operate an automobile until he is 18 in exchange for his father’s promise to pay him $2,000, is there a valid contract?
Yes, when one refrains or promises to refrain from doing something this conduct is called forbearance. If a promisor had a right to do the act, forbearance is a valid consideration.
10. When will courts apply the doctrine of promissory estoppel?
The courts will apply promissory estoppel when the promise would be substantially harmed if it were not enforced.
CASE STUDY QUESTIONS 3,4,6,8
3. Yes, because both parties benefited from the settlement agreement.
4. Yes, because even though such promises lack the technical
1. When does a promise constitute consideration?
For a promise to constitute consideration, the promise must impose an obligation on the person making it.
2. May a promise that is conditional constitute consideration?
Yes, such a promise consideration even if the condition is unlikely to occur.
3. What is the general rule about the adequacy of consideration?
The adequacy of the consideration is irrelevant because the law does not prohibit bargains.
5. Is there consideration when a secured note for a lesser amount is given and accepted in discharge of an unsecured note for a greater amount? Explain.
No, because if a secured not for a lesser amount is given and accepted in discharge of an unsecured note for a greater amount, the difference between the two notes is discharged. The security is the consideration to support the contract to settle for a lesser sum.
6. George agrees to remodel a kitchen for Harry for $30,000 but after beginning work asked Harry to pay $34,000. Can George enforce Harry’s new promise to pay $4000?
No, for the new contract to be enforceable there must be some added features that benefit both parties, although not necessarily to an equal extent.
7. If a boy promises his father that he will not own and operate an automobile until he is 18 in exchange for his father’s promise to pay him $2,000, is there a valid contract?
Yes, when one refrains or promises to refrain from doing something this conduct is called forbearance. If a promisor had a right to do the act, forbearance is a valid consideration.
10. When will courts apply the doctrine of promissory estoppel?
The courts will apply promissory estoppel when the promise would be substantially harmed if it were not enforced.
CASE STUDY QUESTIONS 3,4,6,8
3. Yes, because both parties benefited from the settlement agreement.
4. Yes, because even though such promises lack the technical