A Donee Beneficiary Contract Exists When the Purpose of the Promisee

question 31

True/False

A donee beneficiary contract exists when the purpose of the promisee in obtaining a promise from the promisor is to make a gift to a third person.

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Definitions:

Unexpected Returns

Returns on an investment that exceed what is predicted by models or expected based on historical trends, often caused by unforeseen factors or events.

Expected Returns

The anticipated amount of profit or loss an investor predicts to receive from an investment, taking into account the possibility of fluctuating values.

Unsystematic Risk

The hazard pertaining to an individual business or field, which can be reduced by diversifying assets.

Systematic Risk

A risk pervasive throughout the whole market or a specific segment of it, not reducible by investment diversification.