A Contract Provision That Relieves a Party to the Contract

question 5

Multiple Choice

A contract provision that relieves a party to the contract from liability is known as:

• A) an executory clause
• B) an exculpatory clause
• C) a mitigating clause
• D) a disaffirming clause
• E) a liquidated damages clause

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Definitions:

Accounts

Financial records that track the income, expenses, assets, liabilities, and equity of an individual or organization, forming the basis for financial reporting.

Transaction Effects

The impact of business transactions on the financial statements, including assets, liabilities, and equity.

Advertising Brochure

A printed promotional document used to introduce a company, product, or service to potential customers.

Recording Process

The systematic method of capturing and documenting financial transactions and events in the accounting records of an organization.