Which of the Following Is Enforceable Without Consideration

question 16

Multiple Choice

Which of the following is enforceable without consideration?

• A) A new promise to pay a debt barred by the statute of limitations.
• B) An illusory promise.
• C) A promise to supply all of the materials a manufacturer will need for the production of a certain item for a specified period of time.
• D) In the majority of states, a promise by a father to pay someone for rendering emergency services to his injured son before the father had arrived at the accident scene.

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Definitions:

Bonds

Long-term debt securities issued by corporations or government entities that pay periodic interest until maturity, at which point the face value is repaid.

Bond Premium

The extra amount by which a bond's market price exceeds its face value.

Annual Interest Expense

The total amount of interest payments a company owes over the course of a year on any borrowed funds.

Premium On Bonds Payable

The excess amount by which bonds are sold over their face value, indicating investors’ willingness to pay more for certain bonds.