Answer to Question 1
TRUE
Answer to Question 2
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.
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