Why Is There No Consideration When a Party Does What

question 65

Multiple Choice

Why is there no consideration when a party does what it is already legally obligated to do?

• A)Because there will not be adequate consideration.
• B)Because promising to do something you are obligated to do is an illusory promise.
• C)Because of the legal doctrine of promissory estoppel.
• D)There is no consideration when a party does what it is legally obligated to do.
• E)Because there is no detriment.

Understand the importance of aligning manager roles and functions to achieve organizational efficiency and effectiveness.

Understand the concept of an emergency fund and how to calculate the appropriate amount.

Recognize different financial products and services, such as lines of credit and investment accounts.

Realize the importance and utility of the internet in monitoring investment prices.

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Definitions:

Capacity

Capacity refers to the maximum amount of work that an organization is capable of completing in a given period.

Unused Capacity

The available but unutilized production capability or volume in a given period, indicating inefficiencies or room for output expansion.

Cost Object

Anything for which cost data are desired. Examples of cost objects are products, customers, geographic regions, and parts of the organization such as departments or divisions.

Indirect Cost

Costs that are not directly traceable to a specific product, project, or activity, such as utilities, rent, and administrative expenses.