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:

Utility

A measure of satisfaction, usefulness, or pleasure derived from consuming goods and services.

Budget Constraint

A limit on the consumption bundles that a consumer can afford given the prices of goods and the consumer's income.

Utility

The satisfaction or benefit derived from the consumption of goods and services.

Optimal Consumption Bundles

Combinations of goods and services that provide the highest utility to a consumer given his or her preferences and budget constraints.