Which of the Following Statements Is TRUE

question 44

Multiple Choice

Which of the following statements is TRUE?

• A)The courts generally do not require adequate consideration because they believe that each person can look after their own interests by deciding how much to demand under a contract.
• B)Promissory estoppel can be used as a sword but not as a shield.
• C)Consideration is unnecessary as long as the word "seal" was printed on a form that a contractual party read.
• D)Because of the significance of the privity of contract doctrine,exceptions can only be created by the legislature,and not by the courts
• E)Consideration can never consist of a promise to perform a pre-existing obligation.

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Definitions:

Long-Run Profitability

A measure of a company's ability to maintain earnings at a certain level over the length of time necessary to cover all costs, including variable and fixed costs.

Imitate

The act of copying or mimicking the actions, appearance, or characteristics of someone or something.

Stock Price

The cost of purchasing a share of ownership in a company, which can fluctuate based on factors like company performance and market conditions.

Discounted Value

The present value of future cash flows discounted back to the present using a specific rate.