1. Which of the following is TRUE regarding illusory promises?
3. Illusory promises are not consideration.
5. Illusory promises are consideration.
7. Illusory promises qualify as consideration when past consideration is at issue.
9. Illusory promises qualify as consideration when promissory estoppel is at issue.
11. Illusory promises are consideration only when a sale of goods is involved.

4 points

Question 21

1. George offers to sell Penelope a ring that George found in his yard. He and Penelope look at the ring and decide that they are not sure what it is. Penelope pays George $10 for the ring. The ring turns out to be a diamond worth much more than $10. George wants the ring back, and Penelope refuses. What is the most likely result?
3. The ring will be returned to George because of mutual mistake.
5. The ring will be returned to George because of unilateral mistake.
7. The ring will be returned to George because of equity.
9. The ring will remain with Penelope unless George can establish that she was negligent in not recognizing the ring's true value.
11. The ring will remain with Penelope because the parties contracted on the assumption that they did not know the value of the ring