M Corporation Assumes a $200 Liability Attached to Property Transferred

question 29

True/False

M Corporation assumes a $200 liability attached to property transferred to it by Jane in a section 351 transaction. In all cases, the assumed liability will be treated as boot received by Jane.

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Definitions:

Unilateral Mistake

A contract law concept where one party is mistaken about a basic assumption on which a contract is based, but the other party is not.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, resulting in harm to the victim.

Franchise Agreement

A legal contract in which a franchisor grants the right to operate a business using its brand, system, and support to a franchisee in return for fees.

Disclaimer

A statement that denies responsibility intending to prevent civil liability arising for particular acts or omissions.