When Are Promises Based on Past Consideration Enforceable

question 64

Multiple Choice

When are promises based on past consideration enforceable?

• A) Never
• B) When enforcement is necessary to avoid injustice
• C) When an illusory promise is made
• D) When a sale of goods is involved
• E) Always

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Definitions:

Scholarships

Financial aid provided to students based on academic or other achievements to support their education, and does not have to be repaid.

Rate of Return

The percentage of increase or decrease in the value of an investment over a given period, adjusted for any payouts.

Interest Income

The income earned on funds deposited or invested, including interest payments from savings accounts, certificates of deposit, bonds, and loans.

Growing Annuity

A series of periodic payments that grow at a constant rate per period, often used to calculate the present value of future payments that increase over time.