All Contracts Must Contain

question 27

Multiple Choice

All contracts must contain

• A) three parties who do not have legal capacity and a consideration supporting an enforceable promise.
• B) three parties who have legal capacity and a consideration supporting an enforceable promise.
• C) two parties who have testamentary capacity.
• D) two parties who have legal capacity.

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Definitions:

Payoff Matrix

A table that shows the potential outcomes (or payoffs) for different actions taken by players in a strategic game, outlining the results for each combination of choices.

Dominant Strategy

A strategy in game theory that results in the best outcome for a player, regardless of the strategies chosen by other players.

Alpha and Beta

Measures used in finance: Alpha indicates the performance of an investment relative to a benchmark, whereas Beta measures the volatility of an investment relative to the market.

Efficiency Results

Describes outcomes achieved in a manner where resources are used optimally to produce desired outputs with minimum waste or inefficiency.