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Hostess's Assets Were Sold in a 363 Auction

question 12

Essay

Hostess's assets were sold in a 363 auction. Such auctions attract both strategic and financial bidders. Which party tends to have the greater advantage: the strategic or financial bidder? Explain your answer.


Definitions:

Gratuitous Promise

A promise made without expecting anything in return, which is generally not enforceable in contract law unless it is made in a deed.

Existing Duty

An obligation that is currently in effect under the law or within the terms of a contract.

Consideration

In contract law, something of value promised to another when making an agreement, which is required for the contract to be enforceable.

Racing Bike

A type of bicycle designed for competitive road cycling, characterized by its lightweight frame and components for speed.

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