Valid Consideration Can Include Any Promise to Do Something One

question 42

Multiple Choice

Valid consideration can include any promise to do something one has no obligation to do,refrain from doing something one has the right to do,or in the case of a unilateral contract,a performance when there is no obligation to do so.This is known as a(n) ______.

• A) exculpation
• B) legal detriment
• C) release
• D) negotiation
• E) promissory estoppel

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in the asset's value over time.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Net Investment

The total amount spent on acquiring, maintaining, and improving fixed assets, minus depreciation.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.