Consideration for a Promise Will Be Sufficient to Establish a Binding

question 44

Multiple Choice

Consideration for a promise will be sufficient to establish a binding agreement where:

• A)the price paid by the promisee is a vague promise to do something or refrain from doing something.
• B)the price paid for the promise was paid before the promise was made.
• C)the price paid by the promisee was the fulfilment of a prior legal obligation, that is, the performance of something the promisee was already legally obliged to do.
• D)the price paid has some legal value even if it is not a fair or adequate price.

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Definitions:

Manage

The act of organizing, controlling, and overseeing resources or tasks to achieve specific goals.

Earnings Over Time

The progression and growth of a company's earnings or an individual's income across different periods.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

ROA

Return on Assets, a financial ratio that shows the percentage of profit a company earns in relation to its overall resources.