Lou Enters into an Agreement with LaFancy Inc

question 24

Multiple Choice

Lou enters into an agreement with LaFancy Inc., an event management company, to coordinate her wedding in June for the sum of $10,000. In March, Lou calls LaFancy to tell the company the deal is off, because she thinks she can do a better job herself. LaFancy sues Lou, and Lou argues lack of consideration as a defense. Which of the following statements holds true of this scenario?

• A) LaFancy has given consideration.
• B) LaFancy had a legal duty to plan Lou's wedding even before the agreement was signed.
• C) Lou can enforce LaFancy's promise to her.
• D) Lou was the only promisor in this contract.

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Definitions:

Indenture Provisions

Legal and financial terms and conditions included in the agreement of a bond issue.

Working Capital Manager

A professional responsible for managing a company's short-term assets and liabilities to ensure sufficient liquidity for daily operations.

Manufacturing Overhead

All indirect costs associated with manufacturing, including but not limited to utilities, rent, and salaries of support staff.

Accounts Payable

Accounts Payable represents a company's obligations to pay off a short-term debt to its creditors or suppliers within a given time frame.