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Why Is Past Consideration Not Adequate Consideration in a Present

question 59

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Why is past consideration not adequate consideration in a present promise?


Definitions:

Net Cash

The balance of cash remaining once cash inflows and outflows have been reconciled.

Investing Activities

Financial transactions and events related to the acquisition or disposal of long-term assets and investments.

Cash Dividends

A portion of a company's earnings that is paid to shareholders, typically in the form of cash.

Net Cash

The total amount of cash and cash equivalents minus any liabilities or financial obligations a company has at any point in time.

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