A Promise to Perform a Pre-Existing Contractual Obligation Cannot Provide

question 52

True/False

A promise to perform a pre-existing contractual obligation cannot provide consideration under a new contract with the same party.That rule always reflects commercial reality.

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Definitions:

Disutility

The negative utility or dissatisfaction experienced by consumers from consuming a good or engaging in an activity.

Marginal Disutility

The added dissatisfaction a consumer experiences from consuming an additional unit of a product or service.

Behavioral Economics

A field of economics that examines how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions.

Anchoring

The tendency people have to unconsciously base, or “anchor,” the valuation of an item they are currently thinking about on recently considered but logically irrelevant information.