To Establish Consideration,the Price Must Be

question 22

Multiple Choice

To establish consideration,the price must be:

• A)valuable,adequate and sufficient.
• B)valuable and either adequate or sufficient.
• C)valuable and adequate,but need not be sufficient.
• D)valuable and sufficient,but need not be adequate.

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Definitions:

Bank Credit

The amount of credit available to a company or individual from a banking institution.

Short-Term Financing

Refers to the borrowing of funds for a period of less than one year to meet immediate financial needs.

Trust Receipts

Trust receipts are documents issued by banks to borrowers indicating that the bank holds the title to imported goods until the loan is repaid.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.