Assignment:
Q1. Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is
a. liable to Niki under the preexisting duty rule.
b. liable to Niki under the concept of accord and satisfaction.
c. not liable to Niki.
d. liable to Niki under the doctrine of promissory estoppel.
Q2. Claudia pledges to donate $10,000 to Disaster Relief & Recovery Inc. (DR&R). On the basis of the pledge, DR&R orders additional supplies. If Claudia does not fulfill the pledge, a court may enforce it
a. as a requirement contract.
b. under the doctrine of promissory estoppel.
c. under the preexisting duty rule.
d. on the basis of unforeseen difficulties.
Q3. In general, a court will question the adequacy of consideration based solely on the comparative value of the things exchanged. True or False
Q4. Under a contract with Valley Vineyard, Walsh begins grading a terraced hillside for the planting of grapes. Halfway through the project, Walsh asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." Valley agrees but later refuses to pay. Their agreement is
a. enforceable.
b. unenforceable because Walsh's request modified the contract.
c. unenforceable because Valley's promise was illusory.
d. unenforceable because Walsh's performance was a preexisting duty.
Q5. Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is
a. an illusory promise.
b. an option-to-cancel clause.
c. an output contract.
d. an enforceable contract.
Q6. Maya's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Maya $25,000 if she agrees to release him from further liability. Maya agrees. If her damages ultimately exceed $25,000, she can
a. recover the balance because the "debt" was unliquidated.
b. recover the balance for lack of consideration.
c. not recover the balance.
d. recover the balance due to unforeseen events.