Which of the Following Would Provide That a Supplier Will

question 26

Multiple Choice

Which of the following would provide that a supplier will NOT be liable to a retailer if it is fails to deliver products to it on time?

• A) a liquidated damages clause
• B) a condition precedent
• C) an exemption clause
• D) a limitation of liability clause

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Definitions:

Fair Market Value

The price at which an asset would change hands between a willing buyer and seller, each having reasonable knowledge of relevant facts, and neither being under compulsion to buy or sell.

Material Facts

Facts that are significant or essential to the issue at hand, and that can influence a decision or outcome.

Void

Refers to an agreement or contract that is deemed legally invalid and unenforceable from the outset, as if it never existed.

Reformation

A court-ordered correction or modification of a written contract to reflect the true intentions of the parties when the contract was mistakenly drafted.