A Contract Is Binding If the Consideration Involved Is a Commitment

question 14

True/False

A contract is binding if the consideration involved is a commitment not to do something, as opposed to a promise to do something.

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Definitions:

Central Planning

A system of economy in which all choices about the creation and allocation of goods and services are made by the government or a central body.

Capitalist Form

A socio-economic system characterized by private ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

Mixed Economy

An economic system combining private and public enterprise.

Private Sector

Refers to the part of the economy that is run by individuals and companies for profit and is not state controlled.