In Most Cases Dealing with the Issue of Consideration,courts

question 111

Multiple Choice

In most cases dealing with the issue of consideration,courts:

• A)still consider a promise binding even if made without a consideration.
• B)do not evaluate the adequacy of the consideration.
• C)consider offers of "love and affection" to be valuable consideration.
• D)weigh the value of the consideration in ruling on the validity of the contract.

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Definitions:

Share-based Payment

A transaction where an entity receives goods or services as consideration for its equity instruments or by incurring liabilities for amounts based on the price of the company's shares.

AASB 2

An accounting standard governing the recognition, measurement, and disclosure of share-based payments.

Remuneration Expense

The total cost incurred by a business to compensate its employees, including wages, benefits, and bonuses.

Exercise Price

The price at which the holder of an options contract may buy or sell the underlying security.