If My Son Takes a Luxury Cruise Without My Permission

question 1

Multiple Choice

If my son takes a luxury cruise without my permission and has the company send me the bill and I pay, I create the impression that I will always pay for this type of conduct. If I fail to inform the company that I will not pay again, this refers to the idea of

• A) promissory estoppel.
• B) false authorisation.
• C) mutual reliance.
• D) agent inducement.
• E) all of the above.

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Definitions:

Precommitments

Actions taken ahead of time that make it difficult for the future self to avoid doing what the present self desires. See time inconsistency and self-control problems.

Self-Control Problems

Self-control problems refer to situations where individuals struggle to resist short-term temptations in order to achieve long-term goals, often leading to impulsive behavior.

Time Inconsistency

The tendency for a person or group to change their plan or perspective over time in ways that can be counterproductive.

Preferences

Individual choices or tastes that determine the selection of goods and services over others based on factors like utility, convenience, or price.