An Agreement That Is Lacking Consideration

question 52

Multiple Choice

An agreement that is lacking consideration:

• A)Is void as against public policy.
• B)Is not enforceable,and thus cannot be performed.
• C)Is enforceable only if in writing.
• D)Will be enforced only against the party who gave consideration.
• E)Is not enforceable,but can be voluntarily performed.

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Definitions:

Merchandise

Goods that are purchased, held, and resold by a business in the normal course of its operations.

Discount Offered

A reduction applied to the regular price of goods or services as a form of promotion or negotiation.

Sales Discount

A reduction in the price of goods or services offered to customers, usually as an incentive for prompt payment.

Credit Sales

Credit sales are transactions where the customer purchases goods or services with the agreement to pay at a later date, typically invoiced by the seller.