How Many States Still Allow a Contract Without Consideration to Be

question 69

Multiple Choice

How many states still allow a contract without consideration to be enforced if it is under seal?

• A) Five
• B) Eight
• C) Ten
• D) Twenty
• E) Thirty

---

Definitions:

Permanent Loss

A decrease in the value of an asset or investment that is not expected to be recovered over time.

Equity Method

A financial recording method where investments in other firms are initially noted at their purchase price and later updated to represent the investor's portion of the investee's profits or losses.

Fair-Value Method

An accounting approach where assets and liabilities are recorded at their current market values rather than their original cost.

Goodwill

An intangible asset arising when a company acquires another for a price higher than the fair market value of its net assets.