Which of the Following Descriptions Would Not Fit the Definition

question 98

Multiple Choice

Which of the following descriptions would not fit the definition of a liability?

• A) Obligation to deliver services already paid for
• B) Result of past transaction
• C) Future obligation for future salary payments
• D) Present obligation for future payment

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from going back on a promised commitment, even if a legal contract does not exist, due to the reliance of the other party on that promise.

Creditor's Promise

A declaration made by a creditor, indicating their intention to extend credit to a debtor under agreed terms.

Tender

The formal process of submitting a proposal or bid to undertake a contract or supply goods or services.

Consideration

Something of value that is exchanged between parties as part of a contract, making the agreement legally binding.