Due to Lack of Consideration,a Promise to Make a Gift

question 56

True/False

Due to lack of consideration,a promise to make a gift will not be enforced and a court will usually order a completed gift to be returned.

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Definitions:

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Mutually Exclusive Projects

Investment opportunities where the acceptance of one project requires the rejection of another.

Cost of Capital

The desired return a corporation aims for in its investment activities to retain its market capitalization and lure in investments.