All Contracts Begin with a Promise,but Not All Promises Become

question 24

Essay

All contracts begin with a promise,but not all promises become contracts.Explain.

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Definitions:

Willingness To Pay

The maximum amount a consumer is ready to pay for a particular good or service.

Expected Revenue

The anticipated amount of money that a business expects to receive over a certain period, often calculated by multiplying the sales price by the expected quantity sold.

Probability

A quantification of an event's probability, on a scale from 0 to 1, where a 0 denotes the event is impossible and a 1 denotes the event is assured to occur.

Foreclosed

A legal process where a lender takes control of a property from a borrower who has failed to meet the terms of their loan.