Consider the Following Two Statements

question 11

Multiple Choice

Consider the following two statements:
I.An unfair bargain which is obscenely advantageous for one party and completely disastrous for the other is not supported by consideration and thus unenforceable.
II.No type of estoppel can ever create a new cause of action; it can only act 'as a shield, not as a sword'.
Which of these statements is true?

• A) Both I and II
• B) Only I
• C) Only II
• D) Neither

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Definitions:

Average Accounting Rate of Return

A method to estimate the profitability of investments, calculated by dividing the average annual profit by the initial investment cost.

Straight-Line Depreciation

A scheme for dividing the expenditure of a solid asset over its life span in equal yearly quotas.

Asset

Anything of value owned by an individual or a corporation that can be used to produce positive economic value.

IRR

Internal Rate of Return, a metric used to estimate the profitability of potential investments.