Reference no: EM133936009

Question

1. Crosby and Hope disagree as to the exact amount one owes the other. They form a new agreement that, on fulfillment, will discharge the prior obligation. This arrangement is called

an accord and satisfaction.

promissory estoppel.

a release.

a covenant not to sue.

2. Helmut writes a check to Elsa in an amount that represents half of the money he owes her. On the back of the check, Helmut includes the words "payment in full" and Elsa cashes it. This discharges the entire debt only if the debt is

undisputed.

disputed.

past due.

none of the above.

3. The courts will not normally attempt to evaluate the adequacy of the consideration in a contract.

True

False

4. Ordinarily, a promise based on past consideration is unenforceable.

True

False

5. Jethro's promise to pay his employees a year-end bonus "if he decides that payment is warranted" is an example of

an illusory contract.

an unconscionable contract.

a unilateral contract.

an enforceable contract.

7. A minor who chooses to ratify a contract on reaching the age of majority may be sued for breach of contract if the minor subsequently fails to perform the contract.

True

False

8. Shelley celebrates her eighteenth birthday and decides that she no longer wishes to keep a car that she bought when she was seventeen. Her right to disaffirm will depend on whether

the car is in good condition.

she acts within a reasonable period of time after reaching the age of majority.

the other party has the right to disaffirm the contract.

none of the above.

9. If a Minor's actions evidence an intent to abide by his contract, that minor has impliedly ratified the contract.

True

False