"Depending Upon the Circumstances, a Promise to Pay a Specific

question 58

Essay

"Depending upon the circumstances, a promise to pay a specific sum of money may or may not be enforceable if that promise is given in response to services that have already been received." Explain whether or not that statement is accurate.

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Definitions:

Discounted Note

A type of debt instrument that is sold or redeemed for less than its face value but whose actual value matures to the full face amount at a later date.

Face Value

The nominal or original value stated on a financial instrument, such as a bond or stock certificate.

Gross Pay

The total amount of money earned by an employee before any deductions or taxes are taken out.

Deductions

Amounts subtracted from gross income to determine taxable income, including expenses, exemptions, and allowances.