In Which of the Following Situations Does a Party Have

question 41

Multiple Choice

In which of the following situations does a party have a duty to disclose all of the relevant facts to the other party,thereby creating the possibility of a fraud by concealment claim?

• A) Failure to disclose the facts would cause a significant financial loss to the other party.
• B) Failure to disclose the facts would cause death or bodily injury to the other party.
• C) The contract involves a second-hand sale of a consumer good.
• D) The party is the one who drafted the terms of the agreement.
• E) The contract involves the provision of professional services.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Operating Activities

Transactions related to the primary business operations, like selling goods or services and other core business activities, reflected in the company's cash flow.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Capital Expenditures

Long-term investments in physical assets such as property, plants, and equipment.