Under the Doctrine of Cy Pres, When the Settlor Has

question 11

Multiple Choice

Under the doctrine of cy pres, when the settlor has not specifically provided for a substitute beneficiary, the:

• A) trust will automatically fail.
• B) court will direct the application of the property to some charitable purpose that falls within the settlor's general charitable intention.
• C) court will direct that the property be handed over to the government for administrative purposes.
• D) original beneficiaries can use the property for a charitable purpose.

Distinguish between accounting and economic profits.

Identify and explain the concept of opportunity cost in decision-making.

Differentiate between sunk costs and relevant costs for decision-making.

Recognize the role of opportunity costs in calculating economic profits.

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Definitions:

Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise when the promisee has relied on it to their detriment.

Equitable Treatment

Fair and impartial treatment of all parties involved in a legal matter or transaction.

Uniform Electronic Transactions Act

A set of laws enacted to establish the legal validity of electronic signatures and records in commercial transactions.

Mailbox Rule

A legal doctrine stating that an offer is considered accepted at the moment the acceptance is dispatched, not when it is received by the offeror.