Two Accomplished Software Developers Want to Combine Their Talents on a Lucrative

question 21

Multiple Choice

Two accomplished software developers want to combine their talents on a lucrative project offered by a large document storage firm.The developers will have their agreed roles and responsibilities incorporated into a formal contract to be prepared by their respective lawyers.Which of the following is a valid representation of the legal significance of the relationship between the parties that will be evidenced by the contract?

• A) Each party will get exactly what it bargained for.
• B) There has been a deliberate meeting of the minds.
• C) Some of the parties to a contract can be sued under it.
• D) No element of coercion exists between the contracting parties.

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Definitions:

Common Stock Subscribed

Common stock subscribed refers to shares that investors have committed to purchase but have not yet been issued by the company.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer.

Preferred Stock

A class of ownership in a corporation with a specified dividend that must be paid out before dividends to common stockholders.

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the profits and assets.