A Business Contract Includes a Term Saying That a Manufacturer

question 38

Multiple Choice

A business contract includes a term saying that a manufacturer will use "smooth grained sand" in a construction project "if this quality is available. The court will most likely imply that the terms of the contract require the manufacturer to put reasonable efforts into trying to find the specified materials. This is an example of the court introducing an implied term based on

• A) principles of statutory interpretation.
• B) statutory requirements.
• C) business efficacy.
• D) previous dealings between the parties.
• E) the nature of the trade.

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Definitions:

Last Dividend

The most recent dividend payment made to shareholders by a company.

Dividend Growing

The increase in the amount of dividend payouts by a company over time.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used to assess the return on investment in bonds.

Required Rate

The minimum expected rate of return by investors for providing capital to a company, often used in valuing investments.