A Gratuitous Promise Differs from a Contract in That

question 31

Multiple Choice

A gratuitous promise differs from a contract in that

• A) a gratuitous promise cannot lapse.
• B) consideration flows only in one direction.
• C) the terms of a gratuitous promise are not precise enough to be binding.
• D) it does not require the payment of money to the offeror by the offeree.
• E) a gratuitous promise cannot be revoked.

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Definitions:

Joint Operators

Parties involved in a joint operation where they have joint control and rights to the assets, and obligations for the liabilities, relating to the operation.

Cash

The most liquid form of financial asset, used to settle debts and transactions.

Contributions

In accounting, refers to the amounts paid into a company by the owners or shareholders for equity.

Joint Operation

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, where each participant is jointly responsible for profits, losses, and costs.