As a General Rule, a Promise Must Be Supported by Consideration

question 20

Multiple Choice

As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule and can be enforced without the support of consideration?

• A) A non-charitable enterprise financed by the subscriptions of individuals
• B) A promise to refrain from doing what one has no right to do
• C) An act performed prior to the promise made by the promisor
• D) An obligation of record such as a judgment

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Definitions:

Marketing Control

A method used to evaluate the effectiveness of marketing strategies and ensure that marketing objectives are being met.

Risk

The possibility of suffering harm, loss, or a negative outcome as a result of internal or external vulnerabilities, often calculated in terms of likelihood and impact.

Divestiture

The process of selling off a business unit or division, or disposing of an asset, as part of a strategic business decision.

Exchange Rates

The price of one currency in terms of another for conversion purposes.