There Is a Principle That Says When a Gratuitous Promise

question 17

Short Answer

There is a principle that says when a gratuitous promise to do something in the future causes someone to incur an expense, the promisor may be liable for failing to live up to that promise. What is this principle known as?

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Definitions:

Deposit in Transit

Funds that have been deposited by a company in its bank account but have not yet been recorded by the bank, leading to a timing difference in the company's accounting records.

NSF Notation

A notation made by banks on a bounced check indicating "non-sufficient funds," meaning the account does not have enough money to cover the check.

Service Charge

Fees charged to customers for specific services or as penalties for not meeting certain criteria.

Note Receivable

A financial asset representing a promise to receive a definite amount of money at one or more specified future dates.