Question

Mary threatens Doug with a $50,000 civil lawsuit unless Doug agrees to a settlement of their dispute. Doug argees to a settlement of $25,000. Doug can rescind the settlement agreement because he was under duress at the time. True False 4 points QUESTION 7 "In consideration for you having helped me when I was unconscious, I will give you $100.00." This is a binding promise because there is legally sufficient consideration. True False 4 points QUESTION 8 A minor's right to disaffirm a contract must be exercised while he is still a minor. True False 4 points QUESTION 9 Many sold his auto repair business for $300,000.00, a portion of which represented the fee for the goodwill he acquired over the years. Manny agreed not to compete with the purchaser or open a similar business in New York State for the next 5 years. This covenant in the contract is enforceable. True False

Answer 1

1. False.

There was no coercion, as there was an outstanding dispute between Mary and Doug.

2. True.

There is no legally sufficient consideration in the given situation, but a promise to compensate for past voluntary services does not require consideration in order to be enforceable. An exception to the rule of No Consideration No Contract.

3. False.

An agreement with a minor is void ab initio.

4. True.

An agreement in restraint of trade is ordinarily void. But not so in sale of goodwill or intellectual property rights.