When There Is No Consideration for a Promise, the Agreement

question 20

Multiple Choice

When there is no consideration for a promise, the agreement is:

• A) a quasi contract.
• B) equitable.
• C) not binding.
• D) unethical.

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Definitions:

External Users

Individuals or entities outside a company, such as investors, creditors, regulators, and customers, who use the company's financial information to make decisions.

Accounting

The systematic process of recording, measuring, and communicating financial information about economic entities.

Recording

The act of documenting financial transactions in the books of accounts as part of the accounting process.