The necessary elements of a contract include:
Answer(s): C
Contracts require each of the following:1. Offer and acceptance2. Mutual assent meeting of the minds)3. Consideration bargained-for exchange)4. Legality legal purpose)5. Capacity of parties legal ability
Consideration consists of:
Answer(s): D
Consideration must be legally sufficient and intended as a bargained-for exchange. A promise has provided legally sufficient consideration if s)he incurs a legal detriment or if the promise receives a legal benefit An essential aspect of consideration is that it be bargained for, and given in exchange for, the consideration provided by the other party.That is, consideration is mutual.
Lamar became homeless at a very young age and was taken in by Aunt and Uncle. Many years later, Lamar became a detective in the city police department.When Aunt disappeared and was not heard from for a month, the case was assigned to Lamar. Uncle also came to Lamar and asked him to promise to find Aunt in return for the years of support. Lamar agreed to Uncle's request.Which of the following is true?
Answer(s): B
Lamar has a pre-existing legal duty to find Aunt Consideration does not exist if an existing duty was imposed by law or a person is already under a contractual agreement to render a specified performance. Lamar will suffer no new legal detriment by finding Aunt; thus, no contractual obligation exists.
Which of the following creates a valid contract between the parties?
A valid contract exists because Anxious Father offered to pay Albert US $4,000 for taking his daughter to the dance. This is a unilateral contract supported by the consideration of US $4,000. Albert will be entitled to the US $4,000 after he takes the daughter to the dance.
Control objectives regarding effectiveness and efficiency, reliability, and compliance are the basis of which control framework?
Probably the most well-known control framework in the U.S. is Infernal Control Integrated Framework, published in 1992 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The document is commonly referred to as the COSO Framework." The COSO Framework defines internal control as A process, effected by an organization's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:· Effectiveness and efficiency of operations· Reliability of financial reporting· Compliance with applicable laws and regulations
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