Under Some Circumstances, Courts Do Not Require Consideration for a Promise

question 294

Multiple Choice

Under some circumstances, courts do not require consideration for a promise to be enforced. The doctrine used by the courts to bind a promisor is called detrimental reliance or:

• A) restitution
• B) promissory estoppel
• C) revocation
• D) all of the other choices
• E) none of the other choices

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Definitions:

Underwriting

The process by which an individual or institution takes on financial risk for a fee, such as issuing insurance policies or bringing a new security issue to the market.

Spread

The difference between two prices, rates, or yields, often measuring the gap between bid and ask prices or between interest rates.

Commitment

A pledge or obligation to do something, often used in the context of agreements or contracts.