Which of the Following Propositions Is TRUE in the Context

question 4

Multiple Choice

Which of the following propositions is TRUE in the context of the doctrine of promissory estoppel?

• A)The representee cannot rely on the representor's gratuitous promise if the representor was guilty of inequitable behaviour.
• B)Once legal rights are affected by the doctrine of promissory estoppel, they can never be revived.
• C)Promissory estoppel can only be based on representations of existing or past facts.
• D)Promissory estoppel can be used as a sword but not as a shield.
• E)The doctrine of promissory estoppel is relevant if the representor already has existing rights that can be enforced against the representee.

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Definitions:

Premium Amortization

The gradual reduction of the premium paid above the face value of a bond, allocated over the bond's life until maturity.

Effective Interest Method

An accounting practice for amortizing the discount or premium on bonds payable or receivable, which reflects the actual interest rate the bond earns.

Bond Discount

The difference between the selling price of a bond and the bond’s face value when the bond is sold for less than par.

Coupon Rate

The rate of interest a bond pays annually, calculated as a percentage of its face value.