A Promise Not to Sue Another Party Is Not Consideration

question 70

True/False

A promise not to sue another party is not consideration because the promise does not convey any legal value to the other party.

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Definitions:

Expected Return

is the average return anticipated on an investment, factoring in the probability of each possible outcome.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to the market average.

Systematic Risk

The risk inherent to the entire market or market segment, indicating how fluctuations in the market can affect individual investments.

Risky Asset

An asset that carries a significant degree of risk of losing all or part of its value.