Which of the Following Is Not Correct with Respect to the Adequacy

question 38

Multiple Choice

Which of the following is not correct with respect to the adequacy of consideration?

• A) Must be of some value and love and affection are not enough
• B) Need not be present if the agreement is under seal
• C) Need not be fair, unless there are extenuating circumstances (i.e., insanity or fraud)
• D) Need not be legal if both parties clearly consent
• E) Existing duty: a change in the contract requires new consideration

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Definitions:

Risk-Free Return

The theoretical return on investment with no risk of financial loss, often represented by the yield on government securities.

Sharpe's Measure

A metric used to evaluate the risk-adjusted return of an investment, calculating the excess return per unit of deviation in an investment.

Risk-Free Return

The return on investment that is guaranteed, with no risk of financial loss.

Wildcat Fund

An investment fund that takes higher risks in anticipation of higher rewards, often investing in unproven sectors or speculative ventures.