Carlos Entered into a Contract with Keisha

question 33

Multiple Choice

Carlos entered into a contract with Keisha. He promised to design a computer system for her business and she promised to pay $50 000 to his brother, Mikey. When that contract was created, Keisha agreed that Carlos would receive her promise on trust for Mikey. Which of the following statements is TRUE?

• A) because Carlos and Keisha agreed to create a trust, their contract is valid even without consideration
• B) The facts illustrate the concept of vicarious performance.
• C) Keisha is the trustee of a trust.
• D) Mikey is entitled to enforce Keisha's promise even though he did not provide any consideration.
• E) Carlos is the beneficiary of a trust.

---

Definitions:

Inflation

The pace at which the average cost of products and services escalates, causing the value of money to diminish.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage rate.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Portfolio

A diverse collection of financial investments like stocks, bonds, commodities, and real estate held by an individual or an institutional investor.