[Not So Rich Uncle] Gabriel Is Attempting to Convince Rachel

question 54

Multiple Choice

[Not So Rich Uncle] Gabriel is attempting to convince Rachel to marry him. He promises her that if she will marry him, he will buy a new Mercedes automobile for her within six months of the marriage and take her on a world tour within a year of the marriage date. Rachel agrees, and they sign an agreement by which Gabriel agrees to provide the Mercedes and world tour. The agreement also included several clauses that discussed the distribution of other assets that may be acquired during the marriage in the event a dissolution of the marriage ever happened. Gabriel and Rachel marry on January 1. Unexpectedly, on March 1, Gabriel's supposedly rich uncle, Leo, dies. Leo has no living relatives other than Gabriel and has a will leaving everything to Gabriel who is also appointed executor. In attempting to settle the estate, Gabriel agrees orally to pay out of his own pocket debts of Leo totaling $10,000. Rachel is concerned about Gabriel's doing so. Gabriel tells her not to worry because he will get all the money back when the estate settles. Gabriel admits to a number of friends that he agreed to settle the debts out of his own pocket because he needed to obtain assets from the estate in a hurry and did not want anything to slow down probate. The assets were needed in large part to satisfy his obligations to Rachel. Surprisingly, it later came to light that prior to his death Leo had signed away all his assets to his girlfriend in Argentina. There was nothing left in the estate for Gabriel to inherit. Gabriel disavowed his agreement to pay the $10,000 to various creditors of Leo.
-The agreement between Gabriel and Rachel before they married is known as a(n) :

• A) Prenuptial agreement
• B) Dissolution of marriage contract
• C) Premarriage agreement
• D) Agreement of marriage
• E) Memorandum of marriage

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Definitions:

Accounting System

The methods and procedures used by a business to collect, classify, summarize, and report financial data for use by management and external users.

Voucher

A document representing an internal intent to make a payment to an external entity, detailing the specifics of the transaction.

Liability

A financial obligation or amount owed by a business to others, such as loans, accounts payable, or mortgages.

Money Orders

A payment order for a pre-specified amount of money; it functions as a form of prepaid payment instrument.