There Are Certain Transactions That Are Enforceable Without Consideration

question 86

Multiple Choice

There are certain transactions that are enforceable without consideration.These include:

• A) promises to pay a debt barred by the statute of limitations.
• B) a promise to pay a debt that has been discharged in bankruptcy if certain requirements are met.
• C) a new promise to perform a voidable obligation that has not previously been avoided.
• D) All of these.

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Definitions:

Fair Value

The monetary amount anticipated for the disposal of an asset or the fee for shifting a liability in a coordinated marketplace interaction on the appraisal day.

Bargain Purchase

The acquisition of an asset or company at a price significantly below its fair market value.

AASB 3

The Australian Accounting Standards Board's standard on Business Combinations, which provides the guidelines for accounting for the acquisition of businesses.

Business Combinations

Transactions or other events in which an acquirer gains control over one or more businesses, usually involving mergers or acquisitions.