Day 26 Flashcards
Define: Unilateral contract
Is formed when a promise is exchanged for an act
MCQ-02291
True or False: Only one party makes a promise in a Unilateral Contract
True
MCQ-08881
What is required for an offer to be “sufficient”?
The communication of the offer must be a reasonable expectation
EX: selling a laptop for $1 is NOT reasonable
MCQ-04964
When is a promise to keep an offer open enforceable?
When consideration is given
EX: Bob’s promise not to buy another computer = consideration given
MCQ-04967
Does a death terminate a contract?
Yes, the death of the offeror proof to acceptance terminated the offer by operation of law without notice to the offeree
MCQ-02222
When is the Mailbox Rule in effect?
Under Common Law, when the offer does not specify that acceptance is upon receipt, and does not specify the means of acceptance
MCQ-02489
What is the requirement for effective consideration?
Legally Sufficient
MCQ-01347
When is valid consideration present?
If there is a bargained for exchange of something of legal value
NOTE: if the promised act has already been performed then the bargained element fails
MCQ-01130
How can a contract with a minor be ratified?
- failing to disaffirm within a reasonable time after reaching majority
- expressly ratifying the entire contract orally or in writing
- retaining or accepting the benefits
What is requirements to create an Agency?
- Assent of both parties
- Capacity of principal
NOTE: Consideration is not required
What are the duties of a Principal to the Agent?
- Compensation
- Reimbursement
Define: Actual (real) Authority
Actual authority is the authority the Agent reasonably thinks he has based on communications with the principal
Define: Implied Authority
Actual Authority: (Two Types)
- Implied Authority - Authority from position, past acts, and circumstances
- Expressed Authority - Authority specifically granted by the principal
Define: Expressed Authority
Actual Authority: (Two Types)
- Implied Authority - Authority from position, past acts, and circumstances
- Expressed Authority - Authority specifically granted by the principal
What is the overall limitation for the QBI Deduction?
The LESSER OF: the combined QBI deductions or 20% of the taxpayer’s taxable income in excess of net capital gain
MCQ-08791
Test #1: What is the QBI deduction limited to? The Greater of:
THE GREATER OF:
- 50% of W-2 wages for the business; OR
- 25% of W-2 wages, plus 2.5% of UBIA (PP&E)
MCQ-08791
Requirements for Incentive Stock Options:
- Approved by shareholders
- Granted within 10 years
- Exercise price may not be less than FMV
- Employee CANNOT own more than 10%
- Held at least TWO YEARS
- Employee must remain an employee from the date the option is granted until 3 Months before the option is exercised
MCQ-07357
When is a 90-Day Letter (Notice of Deficiency) issued?
If an Appeals Conference was not requested OR the taxpayer and the IRS do not agree on the proposed adjustments
The taxpayer has 90 days to pay the deficiency OR file a Petition with the U.S. Tax Court
MCQ-08956
Bankruptcy: Debts that cannot be discharged
*WAFTED
- Willful negligence / injury
- Alimony
- Fraud (Fines an penalties owed to the government)
- Taxes (within 3 years)
- Educational loans
- Debts undisclosed in bankruptcy court
MCQ-01837
What income is subject to FICA for an employee and Self-Employed person?
Employee - Gross Wages
Self-Employed - Net Profits
MCQ-02546
What assets are included in a debtor’s bankruptcy estate if they were received after the petition was filed?
Assets received 180 days after the petition that will be included in the debtor’s estate are:
- Proceeds from Life Insurance
- Inheritance
- Divorce Settlements
MCQ-01883
Article 9: Secured Transactions include what?
Applies to the contractual security interest of Personal Property and the Outright Sales of Accounts Receivable
MCQ-01830
What is a defence for Fraud in a Surety loan agreement?
Fraud on the surety by the principal debtor is not a defense unless the creditor knew of the fraud.
MCQ-01849
