A Contract Exists When the Purpose of the Promisee in Requiring

question 46

Multiple Choice

A contract exists when the purpose of the promisee in requiring a promisor's performance to be made to a third person is to fulfill a legal obligation of the promisee to the third person.

• A) void
• B) quasi-
• C) creditor beneficiary
• D) donee beneficiary

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Definitions:

Regulation A

An exemption from registration requirements mandated by the SEC, applicable for smaller public offerings of securities.

Private Offering

A funding method where securities are sold to a small number of selected investors instead of the general public, often to raise capital for a company.

Rule 10b-5

A regulation under the U.S. Securities Exchange Act of 1934 that prohibits fraud, misrepresentation, and insider trading in the securities market.

Conflict of Interest

A situation in which a person or entity has competing interests or loyalties that could potentially influence the objectivity of their decisions.