A Gratuitous Promise Is Generally Not Enforceable

question 68

True/False

A gratuitous promise is generally not enforceable.

---

Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Banker's Acceptance

A short-term debt instrument issued by a company that is guaranteed by a commercial bank.

Bills Of Exchange Act

Legislation that governs the creation, transfer, and payment of bills of exchange, a type of negotiable instrument.

Negotiable Instruments

Legal documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee's name either mentioned or left blank.