An Agreement to Agree to the Material Terms of a Contract

question 29

True/False

An agreement to agree to the material terms of a contract at some future date may be enforceable.

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Definitions:

Dividends in Arrears

This term refers to dividends on preferred shares that have been declared but not yet paid to shareholders.

Stockholder Group

A Stockholder Group consists of individuals or entities that own shares of stock in a company, giving them certain rights, such as voting on corporate matters.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders in cash.

Bond Liability

The obligation of the issuer of the bond to repay the principal amount along with interest to the bondholders on specified dates.