Contracts Falling Under Past Consideration Are Unenforceable Due to a Preexisting

question 14

True/False

Contracts falling under past consideration are unenforceable due to a preexisting consideration.

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Definitions:

Moral Hazard

A situation where one party in a transaction has the opportunity to assume additional risks that negatively affect the other party because they do not bear the full consequences of their actions.

Contract Changes

Modifications or adjustments made to the terms, conditions, obligations, or rights within a contract between parties.

Behavior

The actions or reactions of an entity, often in response to its environment.

Moral Hazard

The situation in which an individual or entity is more likely to take risks because the potential costs will not be borne by them but by another party.