With Regard to Uncertainty in a Contract That Falls Within

question 13

Multiple Choice

With regard to uncertainty in a contract that falls within the scope of Article 2,which of the following is true?

• A) Uncertainty will usually make the contract unenforceable.
• B) Missing terms cannot be supplied at a later date.
• C) Uncertainty as to incidental matters will seldom be fatal as long as the parties intend to form a contract.
• D) Missing terms will cause the contract to be voidable,but the parties will have a chance to fill them in later.

---

Definitions:

Capital Budgeting

The process of planning and evaluating expenditures on assets whose returns are expected to extend beyond one year.

Earnings

The amount of profit that a company produces during a specific period.

Signaling Effect

The signaling effect is a theory in economics and finance suggesting that actions taken by a company, such as dividend announcements or share repurchases, send signals to the market about the company’s financial health and prospects.

Stock Prices

Stock prices are the current market price at which shares of a company can be bought or sold. They fluctuate based on demand and supply, company performance, and market conditions.