BLAW EXAM 3 LSU FRY Questions with
correct Answers
Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he
quits smoking for a month. If Robbie does, is there a binding contract? - answer Yes,
because Robbie gave up a legal right
Janet promises Eli $4,000 for one of his original paintings on the condition that she
receive $1 million from her mother's will. - answer Janet's promise is legally sufficient
unless Janet knew at the time she made the promise that she could not inherit the $1
million.
Stan purchased 400 pairs of gloves from Isaac at a contract price of $800. Fifty of the
gloves were defective, and a dispute arose as to the amount due and owing under the
contract. Stan refuses to pay the $800, and Isaac is threatening to sue. Which of the
following is correct with regard to this transaction? - answer If Isaac agrees to accept
$600 to settle the dispute and Stan agrees to pay that amount, the substitute agreement
is enforceable.
Which of the following would most likely be enforceable? - answer A substitute
agreement to settle an undisputed debt
Marilyn contracted with Bravo Builders to build an addition to her house for $15,000.
After digging the foundation, Bravo decides that it will take more work and more
concrete than it had originally thought and that it will need to charge an additional
$5,000 for the job. Assuming Marilyn agrees, which of the following is correct? - answer
This is a modification of a preexisting contract, which under common law must be
supported by additional consideration on the part of Bravo Builders.
Carlos ordered an aluminum storm door for $249.99. Before it was delivered, the same
store from which he ordered the door ran an ad in the paper for the same storm door at
$179.99. Carlos calls the store and demands the advertised price. They say okay. -
answer Carlos must pay $179.99.
Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she
wants ruffles around the neck and calls Mary who says it will now cost $60. When Mary
finishes the dress (with ruffles), Georgia must pay: - answer $60, since the modified
agreement is supported by additional consideration.
Sue owes $5,000 to the First National Bank for a student loan which will come due on
January 1 next year. She has been offered a two-year graduate fellowship, but she will
not be able to pay the loan back if she accepts the fellowship. The bank manager tells
,Sue that if she pays $3,000 now, they will forgive the loan. Should Sue accept the offer?
- answer Yes, because the early payment of the loan is consideration that makes the
bank's promise binding
Jack moved from New Hampshire to Florida and decided to have an air conditioner
installed in his car. After it was installed, Jack received a bill for $1,200. Jack called the
dealer and told him he'd never heard of this service costing more than $500. They
argued, but the dealer finally agreed to take $900. Is the agreement enforceable? -
answer Yes, there is consideration for the modified amount
Wayne helped Hank study all night for an important exam. After Hank got an A on the
exam, he told Wayne, "I will give you $10 for helping me get a good grade." Wayne
said, "Thanks, I'll take it." - answer There is no contract because there is no valid
consideration.
Rob repairs a door for Howard. In return, Howard is supposed to pay Rob $75 on
November 1 at Howard's house. Which of the following would constitute legally
sufficient consideration? - answer Howard pays Rob $60 on November 1 but, after
checking with Rob, brings payment to Rob's house.
Which of the following are the two basic elements to consideration? - answer
Bargained-for exchange and legal sufficiency
Which of the following is enforceable without consideration? - answer A new promise
to pay a debt barred by the statute of limitations.
Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you."
This is an example of: - answer an illusory promise.
Nancy, who lives in Birdville, wants to open a McHenry Roast Chicken franchise. Mark,
a representative of McHenry, told Nancy, "If you will buy a lot and build a building in
River City, we will give you a franchise." Nancy bought the lot and built the building as
instructed, only to discover that McHenry had awarded the franchise to a large
corporation. McHenry claims no liability to Nancy since there was no consideration.
Which statement is most accurate? - answer McHenry is liable to Nancy based on
the concept of promissory estoppel.
Which of the following statements is most accurate concerning charitable subscription
promises? - answer They are generally enforceable if there is reliance by the charity.
Which of the following gratuitous promises are enforceable by statute? - answer All
of the above are enforceable by statute.
Which of the following will support a contract? - answer Forbearance to do an act
, A purchaser's agreement to buy from a particular seller all the materials of a particular
kind he needs is a(n) ____ contract. - answer requirements
Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that
much from her uncle's estate, which is currently being probated. She expects to know
for sure how much she will receive within a week or so. - answer -The consideration
moving from Darla to Edward is the promise of $6,000 subject to a condition.
-Darla's conditional promise is sufficient consideration unless Darla knows she cannot
receive at least $6,000 from her uncle's estate.
Jason's mother would like him to go to college, so in June he enrolls at State University.
He also quits his job and tells his mother his plans to continue taking classes. His
mother says, "I'm so happy that you are going to college that I want to pay for your
books." Jason then sends her a bill for $485. Which of the following is true regarding his
mother's promise? - answer It is unenforceable, because Jason had already enrolled
in school and there is no consideration.
Which of the following requires consideration in order to be binding upon the parties? -
answer Material alteration of a personal service contract
A bank robbery has occurred, and the banker's association has offered a $1,000 reward
for information leading to the arrest and conviction of the robber. Several people are
claiming to be entitled to the money. Which of them is eligible? - answer An off-duty
deputy sheriff from a county other than the one where the arrest occurred
In which of the following situations will a smaller sum be unable to discharge a larger
debt? - answer If the smaller sum is paid when the larger sum would ordinarily be
due, but the debtor is on the verge of insolvency
Andrew agrees to paint Betty's house for $500. Two days after he starts the job, he
decides that $500 isn't enough money. He refuses to finish the job unless Betty agrees
to pay him $100 more. What law applies to this fact situation? - answer Andrew gives
no additional consideration in return for modification of a preexisting contract.
William agrees to drill a well up to 200 feet deep for John's rural cabin. The contract
price is $3,000. After drilling 100 feet, William strikes solid granite rock. He talks to John
and explains that this is highly unusual for the area and could not have been anticipated
at the time of entering into the contract. He offers to get a special drill, but says it will
cost him more money, so that he will be unable to complete the project for the agreed
price. Because John is anxious to have the well, he agrees to pay William an additional
$1,000 to complete the job. However, once the well is finished, he changes his mind
and now says he will pay only the originally agreed-upon amount. - answer The
parties have agreed to a substitute contract which discharges the original contract. John
is obligated to pay the additional $1,000.
