Which of the Following Is a Distinguishing Feature of Force

question 14

Multiple Choice

Which of the following is a distinguishing feature of force majeure clauses?

• A) They are rarely enforced by the courts.
• B) They allow parties to decide whether a particular event amounts to frustration.
• C) They can be used to force parties to mitigate their damages.
• D) They ensure parties are liable in the event of frustration.

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Definitions:

Securities Act of 1933

A U.S. law enacted to regulate the offer and sale of securities, primarily aimed at preventing deceit, misrepresentations, and other fraud in the securities industry.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, often with dividends that are paid out before those of common shares.

Securities Act

U.S. legislation enacted in 1933 to regulate the sale of securities, primarily aimed at preventing fraud in the securities market.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in unintended harm to another party.