A Letter of Intent Is Not Likely to Be Enforceable

question 10

Multiple Choice

A letter of intent is not likely to be enforceable unless:

• A) there is a clearly stated start date for the contract.
• B) both parties agree on compensation.
• C) it is clear that both parties intended to be bound by the letter.
• D) conditions in the letter are met.

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Definitions:

Consumer Equilibrium

A state in which a consumer has allocated their income in a way that maximizes their total utility, given the prices of goods and services.

Total Utility

The total satisfaction received from consuming a particular quantity of goods and services.

Indifference Curve

A graph representing combinations of two goods or services among which a consumer is indifferent, showing preference levels.

Optimal Consumption

The mix of goods and services that maximizes consumer utility or satisfaction given their budget constraints.