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Amanda Wants to Open a Flower Shop and Is Trying

question 53

Multiple Choice

Amanda wants to open a flower shop and is trying to decide whether to open it in the downtown area or in the suburbs. Amanda is addressing the _____ component of the 4Ps.


Definitions:

Illusory Consideration

An apparent promise or agreement that lacks a real commitment and therefore does not form a binding contract.

Adequacy of Consideration

An evaluation of whether something of legally sufficient value has been given in exchange for a promise or action, as part of a contract.

Fair Market Value

An estimate of the market value of a property, based upon what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.

Unilateral Contract

A type of contract in which only one party makes a promise or undertakes a performance in exchange for an act, rather than a promise, from the other party.

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