How Can the Concept of Unforeseen Difficulties Affect Whether a Contract

question 14

Multiple Choice

How can the concept of unforeseen difficulties affect whether a contract meets the consideration requirements?

• A) Unforeseen difficulties can allow a promise of illegal consideration to meet the consideration requirements.
• B) Unforeseen difficulties can convert an illusory promise to a valid binding promise.
• C) Unforeseen difficulties can result in past consideration meeting the consideration requirements.
• D) Unforeseen difficulties can result in a contractor's promise to complete an existing contract being supported by new consideration rather than being considered a preexisting duty.
• E) Unforeseen difficulties cannot affect whether a contract meets consideration requirements.

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Definitions:

Economic Profit

The difference between total revenue and total economic costs, including both explicit and implicit costs, reflecting the true profitability of a firm.

Elastic

A characteristic of supply or demand that indicates a high responsiveness to changes in price.

Monopolistic Competitor

A firm operating in a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and price setting.

Excess Capacity

A situation in which a company can produce more goods or services than currently demanded, due to underused resources.