Which of the Following Is Not a Necessary Element of Promissory

question 6

Multiple Choice

Which of the following is not a necessary element of promissory estoppel?

• A) The promisor and the promisee must engage in a bargained-for exchange.
• B) The promisor must intend or should reasonably expect that the promisee will rely on the promise.
• C) The promisee must in fact rely on the promise in some definite and substantial manner.
• D) Enforcement of the promise is the only way to avoid injustice.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which can be a bank loan, bond, mortgage, or other forms of debt financing.

Discounted Bond

A bond sold for less than its face value due to prevailing interest rates being higher than the bond's coupon rate.

Amortized

The process of gradually writing off the initial cost of an asset over a period of time or spreading out a loan payment.

Discount on Bonds Payable

The difference between the bonds' par (or face) value and their lower selling price, representing additional interest expense to the issuer over the term of the bonds.