Discuss the Judicial Doctrines of Sound Business Purpose,continuity of Interest,and

question 57

Essay

Discuss the judicial doctrines of sound business purpose,continuity of interest,and the step transaction as they relate to tax-free corporate reorganizations.

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Definitions:

Promissory Estoppel

A rule in law that prohibits an individual from retracting a pledge given to another if the latter has justifiably depended on this assurance to their harm.

Quasi Estoppel

A legal doctrine preventing a party from asserting rights or facts that contradict their past actions or statements.

Bilateral Contract

A type of contract involving mutual obligations whereby each party promises to perform an act in exchange for the other party's act.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.