Rande Promised to Provide a Series of Lectures on Tort

question 45

Multiple Choice

Rande promised to provide a series of lectures on tort law to a group of professional athletes in exchange for payment of $10 000. Shortly before the lectures were scheduled to take place, Rande promised to provide a publishing company with a recorded set of lectures on tort law in exchange for $15 000. The publishing company agreed that Rande's planned lecture for the group of professional athletes would be the subject of the recording. Which of the following statements is TRUE?

• A) Rande does not have a contract with the group of professional athletes because he re- used his promise to provide a lecture in order to support his contract with the publishing company.
• B) Although Rande has contracts with both the group of professional athletes and the publishing company, he can only demand payment from one of them.
• C) Rande does not have a contract with the publishing company because a pre- existing contractual obligation cannot be re- used for the purpose of supporting a new contract.
• D) If Rande fails to provide the lecture as promised, he may be held liable for breach of contract to both the group of professional and the publishing company.
• E) Rande's promise to the publishing company would be enforceable only if it was made under seal.

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Definitions:

Break-Even Analysis

A financial calculation that determines the point at which revenue received equals the costs associated with receiving the revenue, thereby resulting in neither a profit nor a loss.

Contribution Margin

Contribution margin is a financial metric that represents the difference between a company's sales revenue and variable costs, used to assess the profitability of individual products or services.

Profit Goal

A financial objective set by businesses that aims to achieve a specific amount of profit over a certain period of time.

Management By Objectives (MBO)

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.