A Party Who Signs a Contract Will Not Be Bound

question 9

Multiple Choice

A party who signs a contract will not be bound by an exemption clause:

• A) that is not drawn to the party's attention
• B) that is not under seal
• C) that the party did not notice
• D) that is surprising and onerous
• E) when A and D apply

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Definitions:

Inventory System

An inventory system is a mechanism for tracking the sale, purchase, and storage of goods, facilitating efficient management and control of inventory.

DSO

Days Sales Outstanding, a financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Compensating Balances

Minimum cash balances that a borrower agrees to maintain in a demand deposit account as a condition for a loan.

Transactions Balance

The amount of money held to facilitate day-to-day financial transactions, reflecting the liquidity needed for regular expenditures.