Question 1

Your Business Law professor walks into a regularly scheduled class today and states that she will not teach class unless each student enrolled in the class pays her $5.00 to teach today. Does consideration exist?

Accepted Answer

Consideration requires that each party to a contract must agree to give up something of value that they are not already legally obligated to give up. In this scenario, the professor is already legally obligated to teach the class as part of her employment duties, so demanding additional payment to fulfill this preexisting duty does not constitute valid consideration.

Question 2

While driving across country, Katherine and Ryan play their favorite game, "What would you do if you won the Mega-millions lottery?" Katherine states, "If I won the Mega-million I would give you $10,000,000.00." Two years later, Katherine actually wins the Mega-millions and Ryan demands his promised money. Katherine refused. What would likely be the outcome of the case?

Accepted Answer

Katherine's statement is considered an illusory promise because it lacks consideration and a definitive agreement that would make it enforceable in court. It was made in a casual, non-binding context without any formal agreement or exchange of value.

Question 3

A promise made in return for a detriment previously made by the promisee is a

Accepted Answer

Past consideration refers to a situation where the promise is made in return for an action or forbearance that has already taken place. In contract law, consideration must be present for a contract to be valid, but past consideration (something given or done before the promise) is generally not considered valid consideration for a new contract.

Question 4

All of the following are required for promissory estoppel except

Accepted Answer

Promissory estoppel does not require that the offeree be a minor. It is a legal principle that allows a party to recover on a promise even in the absence of a contract, provided they relied on the promise to their detriment. The age of the offeree is not a relevant factor for promissory estoppel to apply.

Question 5

In the landmark case, Lucy v. Zehmer, the court discussed the objective theory of contracts when two parties at a bar were drinking alcohol and after some negotiation executed a written contract wherein Lucy would purchase Zehmer's farm. When Lucy attempted to enforce the contract and purchase the farm, Zehmer stated that he was only joking and never intended to sell the farm. Discuss how the contract employed the objective theory of contracts to determine the outcome of this case.

Accepted Answer

The answer of In the landmark case, Lucy v. Zehmer,...

Question 6

Explain the importance of the concept of the "meeting of the minds" in contract law.

Accepted Answer

The answer of Explain the importance of the concept of...

Question 7

Etta sent a letter to Ethan offering to hire him as an accountant in her firm on May1. Ethan receives the letter on May 3 and he immediately mails back a letter that very same day. May 4^th Etta decides she no longer needs to hire Ethan and mails him a letter revoking her offer of May 1. Ethan receives the revocation letter from Etta on May 6^th. According to the mailbox rule does a contract exist?

Accepted Answer

The answer of Etta sent a letter to Ethan offering...

Question 8

Why do courts NOT evaluate the sufficiency of consideration in contracts, but rather only ensure that the parties understood the trade of two items or services of legal value?

Accepted Answer

The answer of Why do courts NOT evaluate the sufficiency...

Question 9

Professor Peters teaches accounting for Petra University. Monday morning, she comes into class, exhausted from a busy weekend and tells her students that she does not want to teach that day. She states she will only be persuaded to teach if the students pay her an additional $45.00 each. Some students do, and she asks the other to leave the classroom. After her class that day, a group of students approach her and ask her if she would be willing to use her accounting skills to look over their financial books for their new business. She agrees to do it for $100.00. While looking at their financial statements she tells the students that if they all get As on their final exam she will give them $1000.00 each if she wins the lottery that night. Evaluate each situation to determine if there is consideration. For each, explain why or why not consideration exists.

Accepted Answer

The answer of Professor Peters teaches accounting for Petra University....

Quiz 7: Mutual Assent: Agreement and Consideration

Your Business Law professor walks into a regularly scheduled class today and states that she will not teach class unless each student enrolled in the class pays her $5.00 to teach today. Does consideration exist?

A promise made in return for a detriment previously made by the promisee is a

All of the following are required for promissory estoppel except

Explain the importance of the concept of the "meeting of the minds" in contract law.

Why do courts NOT evaluate the sufficiency of consideration in contracts, but rather only ensure that the parties understood the trade of two items or services of legal value?