Why Would Members of a Family Experience an Uphill Battle

question 54

Multiple Choice

Why would members of a family experience an uphill battle in a common law court with respect to enforcement of contractual obligations owed to one another?

• A) The law presumes promises between family members are non-contractual.
• B) The law presumes all promises between family members are gratuitous.
• C) The family members' intention to contract must be subjectively tested.
• D) The family members must understand the legal consequences of a promise.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, reflected on the balance sheet.

Statement of Income

A financial document that provides a summary of a company's revenues, expenses, and net income over a specific period.

Statement of Financial Position

A financial statement that details a company's assets, liabilities, and shareholders' equity at a specific point in time.