In Which of the Following Situations Is There Adequate Consideration

question 40

Multiple Choice

In which of the following situations is there adequate consideration on the part of the promisor to support enforcement of a contract?

• A) Bob,a police officer,promises to drive by your house and check on it during his off-duty time.
• B) Sam,a first-grade teacher,promises to make sure your child learns his lessons in class for $500.
• C) LBM Corporation,at Fred's retirement dinner,promises to pay Fred $2,000 a month during his retirement because of his years of dedication to the company.
• D) I promise to buy a bike from you for $400 if I decide I'm going to get a new bike this year.
• E) Billy,because of all that his mother did in raising him,promises her that he will buy her a new car.

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Income

The financial gain earned or received over a period of time, typically through employment, investments, or business operations.

Flow Measure

A term used in economics to describe a quantity measured over a specified period of time, such as income per month or spending per year.

Quantity Demanded

The total number of units of a product or service that purchasers are eager and capable of procuring at a designated price level.