Explain what an illusory promise is and provide an example.
What will be an ideal response?
Illusory promises are worded in a way that allows the promisor to decide whether or not to perform the promise. A promise to "buy all the apples I want to" is illusory. A bilateral agreement based on an illusory promise is unenforceable due to lack of mutuality. This means that an illusory promise cannot serve as consideration.
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A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9 . Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to
a. decrease retained earnings, increase common stock, and increase paid-in capital b. increase retained earnings, decrease common stock, and decrease paid-in capital c. increase retained earnings, decrease common stock, and increase paid-in capital d. decrease retained earnings, increase common stock, and decrease paid-in capital
Answer the following statements true (T) or false (F)
1. Claim letters should detail both the problem and the actions required for satisfaction. 2. Positive responses to claims never need explanation. 3. An indirect approach in responses to inquiries should have reasons for denying the request followed by the refusal. 4. Most claim refusal letters should close with an apology.
No one leadership theory is a fit for all situations.
a. True b. False
An agreement may violate public policy even if the agreement does not require a party to commit a crime, tort, or violate a statute
a. True b. False Indicate whether the statement is true or false