Business Law

1088 Words Sep 3rd, 2012 5 Pages
Chapter 8 Chapter questions 1,2,3,5,6,7,10

1. When does a promise constitute consideration?

For a promise to constitute consideration, the promise must impose an obligation on the person making it.

2. May a promise that is conditional constitute consideration?

Yes, such a promise consideration even if the condition is unlikely to occur.

3. What is the general rule about the adequacy of consideration?

The adequacy of the consideration is irrelevant because the law does not prohibit bargains.

5. Is there consideration when a secured note for a lesser amount is given and accepted in discharge of an unsecured note for a greater amount? Explain.

No, because if a secured not for a lesser amount is given and accepted
…show more content…
4. No, because it would cause them to perform an illegal act.

6. The court should not vacate the deeds, the county should have known the lots where not there’s by researching the deeds. It was a unilateral mistake by the county.

7. No, because Chatrerine failed to read the contract so this unilateral mistake should not invalidate the contract.

8. Yes he did, Craig asked the salesman about the sign and was told it was a demonstrator. The extended warranty was for new vehicles only but all his documents stated it was a used vehicle. When he has problems with the truck he found out it was used and in two collisions. The past owner confirmed the collisions.

CHAPTER 10 QUESTIONS 1,3,7,9

1.Why must a contract be for a lawful purpose and achieved in a lawful manner?

If it is not for a lawful purpose it would be a void contract.

3. With regard to illegality of a contract, what is the difference between a divisible and an indivisible contract?

If the contract is divisible the legal parts of the contract are enforceable. If the contract is indivisible it cannot be performed except as an entity, then the illegality of one part renders the whole contract invalid.

7. Why are non-compete contracts that have restrictions that go further or longer then necessary to protect the buyer of the business unlawful?

Because it burdens the seller but also because it deprives the

More about Business Law