An Implied Term Is

question 24

Multiple Choice

An implied term is

• A) a term that the promisor intended to include in the contract.
• B) a term that is not included in the contract but which the parties, as reasonable persons, would have included had they thought about it.
• C) an express term that is removed from the contract.
• D) a term that the court will ask the jury to consider implying in the contract.
• E) a term that the parties advice the court can be implied into the contract.

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Definitions:

Securities Exchange Act

A U.S. law enacted in 1934, which governs the trading of securities, such as stocks and bonds, to protect investors and maintain fair and efficient markets.

Preliminary Prospectus

An initial document given to investors that outlines important details of a potential investment, including risks, objectives, and terms.

Red Herring

A preliminary prospectus provided to potential investors in a new issue of securities, containing information but not the final price.

Registration Statement

A legal document filed with the SEC that contains information about a company's financial operations, used for new securities issuance.