The Presumption Relating to Social or Domestic Agreements Is That

question 34

Multiple Choice

The presumption relating to social or domestic agreements is that:

• A)agreements made in a social or domestic context are intended to be legally enforceable.
• B)agreements made in a social or domestic context are not intended to be legally enforceable.
• C)friends and relatives cannot make contracts with each other.
• D)a court will presume that an agreement made in a social setting was intended to be a binding contract.

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Definitions:

Stock Dividend

A distribution of extra shares to shareholders, as opposed to a cash payment, as a form of dividend.

Common Stock

A type of equity security that represents ownership in a corporation, usually carrying voting rights and potential dividends.

Consolidation Process

The procedure of combining the financial statements of two or more entities into one, usually for a parent company and its subsidiaries.

Outstanding Bonds

Bonds issued by a company or government that are currently held by investors and have not yet matured or been redeemed.