Clauses in a Contract That Specify That a Certain Event

question 9

Multiple Choice

Clauses in a contract that specify that a certain event will end the contract before completion is a(n) :

• A) Frustration of contract clause
• B) Condition precedent clause
• C) Condition subsequent clause
• D) Option to terminate

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Definitions:

Friendly Merger

A merger transaction agreed upon and conducted in a cooperative manner by all involved parties, typically with shared strategic goals.

Friendly Consolidation

A type of corporate merger or acquisition that is agreed upon and pursued with the cooperation of both the target and acquiring companies.

Agreement in Principle

A preliminary agreement outlining the basic terms and conditions under which an investment will be made, pending further negotiations and due diligence.

Investment Banker

Financial professionals who deal with raising capital, underwriting securities, and facilitating mergers and acquisitions among other financial services for corporations and governments.