Distinguish between a contract and a gift. Give an example of each


The factor that distinguishes a contract from a gift is that a gift lacks consideration. Consideration can be an act or a promise. Normally, it is either doing or promising to do something you are not legally required to do or refraining from doing something you are legally entitled to do. A contract usually consists of mutual promises, but a gift is a one-way transaction. An example of a contract is: Jane promises to pay Whit $1,500 to repair her roof by October 1 and Whit agrees. Each promise is consideration for the other promise. An example of a gift is: Myra hands Kim four tickets to a soccer tournament, saying, "We hope you and your family can use these to go to see Debra play on Saturday.". Kim says, "Thanks, we'd love to go.". This is an inter vivos gift whereby Myra intends to transfer ownership immediately. She delivered the tickets to Kim, who accepted them.

Business

You might also like to view...

The distributed data processing approach carries some control implications of which accountants should be aware. Discuss two

Business

All of the following are true statements EXCEPT ______.

A. impression management can be abused if not used properly B. impression management can turn into manipulation C. we can decide not to engage in impression management D. careerists will use self-promotion to advance themselves at the expense of others

Business

Packages can be created in local libraries, as can procedures and functions.

Answer the following statement true (T) or false (F)

Business

After a team meeting, Min thought, "Asa has told us he doesn't want any disagreement or drama during the team meetings. But I don't agree with Asa's marketing strategy, and I wish we would have hashed out our different views. I think doing so might have fostered some new, creative ideas." If you were advising Asa to more effectively manage conflicts in his team, what would you say?

A. Do not avoid conflict. B. Emphasize competing for stronger teamwork. C. Practice accommodation to attain your best personal outcome. D. Never compromise. E. Collaborate for a satisficing outcome.

Business