Rose Questions Whether There Is Consideration for Her Contract to Perform

question 12

Multiple Choice

Rose questions whether there is consideration for her contract to perform with Saxophone Symphony. To constitute consideration, there must be​

• A) ​a payment.
• B) ​a performance.
• C) ​a bargained-for exchange.
• D) ​serious thought underlying each party's intent to contract.

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Definitions:

Convertible Bond

A bond which allows conversion into a specified amount of the issuing company's stock, often at the choice of the holder.

Conversion Ratio

The specific quantity of shares an investor can receive for each convertible security if they choose to convert it into equity.

Pay-in-Kind Bond

A bond that pays interest in the form of additional bonds or securities instead of cash, often used by companies seeking to preserve cash flow.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the income earned from lending money.