1. When each party has given and received something of legal value, the agreement is supported by __________.
A. contractual capacity
B. satisfaction
C. preexisting obligations
D. consideration
2. The concept of Consideration is important because it
A. "locks-in" each aspect of the agreement.
B. makes it possible for one party to negotiate a "better deal" after the contract has been formed.
C. encourages the practice of "low balling".
D. makes certain that the bargained for exchanges are of equal value.
3. A homeowner, who is having an addition built according to detailed plans, will
A. have to reimburse the contractor for all unanticipated expenses.
B. have to increase the amount owed the contractor when there are "unforeseen difficulties".
C. never be aware of the total cost of the project since unexpected problems can always occur.
D. always be a party to a "cost plus" contract.
4. When one party to a contract provides something of legal value and does not receive anything of legal value in return, that party has, in essence, given a legal __________>
A. voucher
B. detriment
C. gift
D. remedy
5. Which one of the following would probably be considered an "unforeseen difficulty"?
A. Damage caused by strong winds in Western New York during a storm in February.
B. Damage caused by a powerful earthquake in Western New York.
C. The discovery of bedrock just below the surface of the soil that has to be removed.
D. The departure of a key employee and difficulty in finding a suitable replacement.
6. When reasonable and honorable people disagree over the amount owed, the debt is __________.
A. unliquidated
B. liquidated
C. discharged
D. preexisting
7. When one party makes a clear and definite promise, and the other party incurs some expense or loss as a result of a reasonable reliance on that promise, the promisor may be held liable for the consequences as a result of the concept of __________. In this situation, the offerer can not revoke the offer.
A. preexisting obligation
B. past consideration
C. promissory estoppel
D. accord and satisfaction
8. An agreement, within which a promise is so indefinite that it can not be enforced, or whose fulfillment is discretionary, creates a/an __________. contract.
A. illusory
B. quasi
C. voidable
D. implied
9. Which one of the following is NOT a definition, or explanation, of Consideration?
A. The bargained for exchange.
B. What each party gives and receives that is of legal value.
C. The mutual obligations of each party on a contract.
D. The agreement that results from an offer and an acceptance.
10. When the offeree, or promisee, makes a commitment that he/she is not already obligated to fulfill, or agrees not to act in a way that he/she would otherwise be free to act, the offeree, or promisee, has incurred a __________.
A. legal benefit
B. unenforceable obligation
C. legal detriment
D. promissory estoppel