A Contract into Which Both Parties Enter but in Which

question 51

Multiple Choice

A contract into which both parties enter but in which one or both of the parties can choose not to perform their contractual obligations is known as ________.

• A) illusory promise
• B) gift promise
• C) preexisting duty
• D) illegal consideration

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Definitions:

Lost Future Sales

Revenue that a business could have earned from sales but is unable to due to disruptions, competition, or other factors.

UCC Exception

A specific deviation from the Uniform Commercial Code, allowing for different applications of law in certain cases.

Federal Consumer Protection Laws

Legislation enacted by the federal government aimed at ensuring consumer rights are upheld, preventing fraud, deception, and unfair business practices.

Lemon Laws

are state laws in the United States designed to protect consumers from buying or leasing defective vehicles that cannot be repaired satisfactorily.