Contract Law

question 51

Multiple Choice

Contract law:

• A) has seen little change during the nineteenth and twentieth centuries.
• B) has experienced an expansion of the absolute freedom of contract during the twentieth century.
• C) today usually recognizes contractual obligations whenever the parties manifest an intent to be bound.
• D) requires privity between parties seeking to enforce contractual rights.

---

Definitions:

Advertising Budget

The specific amount of money allocated for promoting a product, service, or brand during a set period.

Monthly Sales

The total revenue or units sold by a company in one calendar month.

Degree of Operating Leverage

A financial indicator that evaluates how changes in sales volume impact a company's operating earnings.

Break-even

The juncture where overall expenses match total income, indicating neither profit nor loss is present.