Which of the Following Statements Is TRUE

question 5

Multiple Choice

Which of the following statements is TRUE?

• A)Consideration must be adequate but it does not have to be sufficient.
• B)A person can provide consideration by making a promise that will either create a benefit for itself or impose a detriment upon the other party.
• C)A party seeking to receive the benefit of a promise does not have to provide consideration if it placed its seal upon a document in which the promise is contained.
• D)Love and affection can serve as consideration if a contract is created between family members.
• E)To place a contract under seal,a person may either apply a seal or write the word "seal" on a document.

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Definitions:

Money Market Instruments

Short-term debt instruments, usually with a maturity of less than one year, used for borrowing and lending in the money market.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations to finance their immediate operational needs, characterized by its low-risk and short maturity period.

Tax-exempt

Refers to income, transactions, or entities that are not subject to tax by government authorities.

Weighted Average

A mean calculated by giving values in a data set more influence according to some attribute of the data, such as frequency or importance.