A Gratuitous Promise Is Generally Not Enforceable

question 68

True/False

A gratuitous promise is generally not enforceable.

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Definitions:

Sarbanes-Oxley Act of 2002

A U.S. law passed in response to financial scandals to protect investors by improving the accuracy and reliability of corporate disclosures.

Securities and Exchange Commission

A U.S. federal agency responsible for regulating the securities industry, enforcing federal securities laws, and ensuring market integrity.

Registration Statement

A legal document submitted to regulatory authorities providing details about an investment offering for sale to the public, typically containing financial data, risks, and other significant information.

Prospectus

An official document that a company issues to potential investors detail the offering of securities for sale, providing financial data, and disclosing risks.