Bruce and Rosie Entered into an Agreement

question 46

Multiple Choice

Bruce and Rosie entered into an agreement.He promised to transfer a necklace to her mother and she promised to deliver a computer to his father.Which of the following statements is most likely to be TRUE?

• A)There is no contract between Rosie and Bruce because neither her mother nor his father is a party to the agreement.
• B)As long as Bruce's father relies upon the terms of the existing contract, and as long as he does not act inequitably, he can use the doctrine of promissory estoppel to compel Rosie to transfer the computer to him.
• C)As long as Bruce transfers the necklace to Rosie's mother, Bruce's father can demand delivery of the computer from Rosie.
• D)There is no contract between Bruce and Rosie because there was no mutuality of consideration.
• E)Even if neither Bruce nor Rosie have yet performed, a valid contract exists on the basis of their mutual exchange of promises to perform.

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Definitions:

Economic Hypotheses

Propositions or statements regarding the relationships between economic variables that can be tested with data.

Laboratory Tests

Standardized procedures conducted in a controlled environment to analyze substances, diagnose conditions, or conduct experiments.

Scientific Method

A systematic approach to research where a problem is identified, relevant data is gathered, a hypothesis is formulated from the data, and the hypothesis is empirically tested.

Behavioral Assumptions

Refer to the underlying presumptions about how individuals and institutions will behave or make decisions in economic models or theories.