_____ Refers to Using Various Methods to Reduce the Possibility

question 56

Multiple Choice

_____ refers to using various methods to reduce the possibility of a loss occurring.

• A) Risk avoidance
• B) Risk prevention
• C) Risk transfer
• D) Risk assumption

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Definitions:

Essential Terms

Fundamental conditions or clauses in a contract that are critical to its enforcement and interpretation.

Clearly Specified

means stated or described in a manner that leaves no ambiguity regarding the details or requirements.

Past Consideration

Anything given or promised to be given in the past, which cannot be considered valuable in the context of forming a current contract.

Law of Consideration

A principle in contract law that requires an exchange of something of value between the contracting parties.