Which of the Following Will Be Legally Binding on All

question 46

Multiple Choice

Which of the following will be legally binding on all parties despite lack of consideration?

• A)An irrevocable oral promise by a merchant to keep an offer open for 60 days.
• B)A promise to donate money to a charity,which the charity relied upon in incurring large expenditures.
• C)A promise to pay for the college education of the child of a person who saved the promisor's life.
• D)A signed modification to a contract to purchase a parcel of land.

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Definitions:

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or sold but not yet paid for.

Sales on Account

Transactions where goods or services are sold with the understanding that payment will be made at a later date.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations on outstanding debt from its operating income.

Average Sale Period

The average time it takes for a company to sell its inventory, calculated over a specific time frame.