Which of the Following Promises Does Not Have to Be

question 7

Multiple Choice

Which of the following promises does not have to be evidenced by a writing or electronic record in order to be enforceable?

• A) Mindy's agreement with Susan to buy her bike for $400.
• B) Stewart's promise to work for Austin for a two-year period.
• C) Dad's promise to the credit union that he will make payments on his son's truck.
• D) Jones's agreement with Smith to sell his condominium for $100,000.

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Definitions:

Outstanding Balance

The amount of money owed on a loan or credit account that has not yet been paid.

Amortized

The process of paying off a debt through regular payments, where each payment covers both interest and a portion of the principal amount.

Compounded Annually

Interest on an investment is calculated once a year, with the interest added to the principal.

Equal Payments

Equal payments refer to the financial concept where the amount of money paid in each installment of a loan or investment is the same throughout the term.