if Jamie offers Mercedes a job managing the riverboat casino he plans
to open on January 1, but, before Mercedes accepts the offer, the state decides to no longer
allow riverboat casinos to operate, the offer of employment terminates.
This is an example of De____________. - ANSWER Destruction of...
BUL 4421- FAU Gendler Exam 2024 with
100% Correct Verified Answers
if Jamie offers Mercedes a job managing the riverboat casino he plans
to open on January 1, but, before Mercedes accepts the offer, the state decides to no longer
allow riverboat casinos to operate, the offer of employment terminates.
This is an example of De____________. - ANSWER Destruction of subsequent illegality of the
subject matter.
lapse of time - ANSWER If the offer states it will be held open for only a certain time,
it terminates when that time expires.
In the absence of such a time condition, the offer will expire after the lapse of a reasonable
amount of time. Time varies depending on the subject matter of the offer.
authorized means of acceptance - ANSWER if the offer specifies that acceptance must be
communicated by a specific mode, that mode is the only means for accepting the offer
*if no mode of communication is specified in the offer, any reasonable means of acceptance is
valid.
For a unilateral contract only performance by the offeree constitutes a valid acceptance
- ANSWER Read that again.
consideration - ANSWER what a legal entity receives in return for performing a
contract obligation.
required in every contract.
Suppose Juanita agrees to purchase Julio's car for $1,000.
Juanita's payment of $1,000 is the ___________ Julio will receive for the car. Title to and
possession of the car are the ____________ Juanita will receive in exchange. Both parties
,must receive something of value.
This is an example of c__________. - ANSWER Consideration.
(think: considering what you will receive or give.)
Types of consideration: - ANSWER -benefit to the promisee
-detriment to the promisor
-promise to do something
-promise to refrain from doing something
A benefit to the promisee - ANSWER a promise to stay in a job until a particular project
is complete (this is a benefit to the employer)
A detriment to the promisor - ANSWER ex. a promise to your football coach to refrain
from riding your motorcycle during football season even though you love riding it
(think: a detriment to you)
A promise to do something - ANSWER ex. a promise to cook dinner for your roommate for
the next six months
A promise to refrain from doing something - ANSWER ex. a promise to stop staying out late at
night during exam week
adequacy of consideration - ANSWER *the court seldom considers adequacy of consideration
*the court does not weight wether you made a good bargain
*EXCEPTION: if the court believes fraud or undue undue influence occurred, the court may
look at adequacy of consideration
Suppose Donna purchases a
flat-screen TV from Celia, a friend in her business law class. Donna pays $500 for the TV
,but later realizes it is worth less than $100! May Donna sue Celia?
This is an example of Ad___________. - ANSWER Adequacy of Consideration.
Typically, the answer is
no, Donna cannot sue. It is Donna's responsibility to do her research and determine what
price she should pay.
The court will not set aside the sale because she made a bad deal.
Illusory promise - ANSWER -Is not a promise at all
-An illusory promise is not a consideration.
*Example: Shawn offers to sell Molly his skis for $300, and Molly responds "I'll look at them in
the morning, and if I like them, I'll pay you." Molly has not committed to doing anything.
enforcement of promise - ANSWER for a court to ENFORE A PROMISE, BOTH parties
must provide valid consideration, consideration by one party only is insufficient to
support an enforceable contract
preexisting duty rule - ANSWER performance of a duty you are obligated to do under the law is
not consideration. Performance of an existing contractual duty is not good consideration.
Part of a police officer's sworn public duty is catching suspected criminals. If someone offers
a reward for the capture of a suspect, the police officer may not collect it, as he or she was
already obligated to apprehend the suspect.
This is an example of Pre__________. - ANSWER Preexisting duty rule.
Gene decides to have a pool built in his backyard. Under the existing contract, the pool is to
be completed
by June 1, just in time for summer. The pool contractor then explains that due to a shortage of
workers, the completion date cannot be met; however, if Gene were to pay an extra
$5,000, additional workers could be hired and the pool completed on time. Gene tells the
contractor he will pay the $5,000. On June 1, the pool is completed and the contractor asks
, for the additional payment. Is Gene legally obligated to pay?
This is an example of Pre__________. - ANSWER Preexisting duty rule.
The answer is no. The pool
contractor had a preexisting contractual duty to complete the pool by June 1. Gene is under no
obligation to pay the additional money.
The only exception is UNFORESEEN circumstances and additional work NOT STATED in the
contract.
partial payment of a debt - ANSWER Partial payment of a debt may or may not be
valid consideration, depending on whether
the debt is liquidated or unliquidated. In a liquidated debt, there is no dispute that money is
owed or how much.
In an unliquidated debt, the parties either disagree about whether money is owed or
dispute the amount.
Liquidated Debt
Unliquidated Debt
liquidated debt - ANSWER no dispute that money is owed or how much.
i.e credit card balance
unliquidated debt - ANSWER the parties either disagree about whether money is owed or
dispute the amount; the parties can settle for less than the full amount if they enter into an
accord and satisfaction. This accord is the new agreement to pay less than the creditor claims
is owed.
accord and satisfaction - ANSWER settling to pay an unliquidated debt for less than the
full amount requires:
i) the debt is unliquidated
ii) the creditor agrees to accept as full payment less than it claims is owed
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