When Sav Was a Teenager,he Was Involved in a Boating

question 11

Multiple Choice

When Sav was a teenager,he was involved in a boating accident.After seeing the accident,Philip approached in a second vessel and saved Sav's life.Some years later Sav promised to reward Philip for his life-saving actions.He specifically promised to turn over a valuable coin set that he had acquired over the years.On the day he was to deliver the coin set Sav changed his mind and said that although he was grateful,he was not going to part with the coin set.Philip's court action to enforce the promise will

• A)succeed because the promise is binding.
• B)fail because the promise is gratuitous and not binding.
• C)succeed because the previous benefit constitutes consideration.
• D)succeed because consideration will be implied at law.
• E)fail because a deposit is required when dealing with past consideration.

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Definitions:

Corporate Contracts

Agreements entered into by a corporation with other entities or individuals, covering aspects such as sales, services, and leases.

Full Disclosure

The requirement or practice of disclosing all relevant and significant information to a transaction's parties, often used in financial and legal contexts.

Business Judgment Rule

A rule under which courts will not hold corporate officers and directors liable for honest mistakes of judgment and bad business decisions that were made in good faith.

Negligence Or Mismanagement

The failure to exercise the care or oversight required, resulting in harm or loss.