Cengage Advantage Books Business Law Text & Cases An Accelerated Course 13th Edition By Miller – Test Bank

Consideration,
Capacity, and Legality

TRUE/FALSE QUESTIONS

1. For consideration to have “legally sufficient value,” it must consist of goods or money.

ANSWER: F PAGES: Section 1
BUSPROG: Analytic AICPA: BB-Legal

2. A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable.

ANSWER: T PAGES: Section 1
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3. A transaction that lacks a bargained-for exchange lacks an element of consideration.

ANSWER: T PAGES: Section 1
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4. In general, a court will question the adequacy of consideration based solely on the comparative value of the things exchanged.

ANSWER: F PAGES: Section 1
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5. A promise to do what one already has a legal duty to do constitutes legally suf-ficient consideration.

ANSWER: F PAGES: Section 1
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6. Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

ANSWER: T PAGES: Section 1
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7. An illusory promise is a promise that is enforceable without consideration.

ANSWER: F PAGES: Section 1
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8. If a debt is liquidated, accord and satisfaction cannot take place.

ANSWER: T PAGES: Section 1
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9. The doctrine of promissory estoppel does not apply if there is a clear and definite promise.

ANSWER: F PAGES: Section 1
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10. All contracts between adults and minors are void.

ANSWER: F PAGES: Section 2
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