If a Promisor Gives an Illusory Promise, He/she Gives No

question 27

True/False

If a promisor gives an illusory promise, he/she gives no consideration and no contract is formed.

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Definitions:

Sales Returns And Allowances

Concessions granted to customers for returned goods or from granting reductions in the original sales price.

Sales Discounts

Reductions in the price sold given by a seller to a buyer, often used as an incentive for early payment or bulk purchases.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Normal Balance

The side of an account (debit or credit) that is positive or increasing; assets and expenses typically have a debit normal balance, whereas liabilities, equity, and revenues usually have a credit normal balance.