The Exercise of the Power to Avoid a Contract Is

question 47

Multiple Choice

The exercise of the power to avoid a contract is known as:

• A) ratification.
• B) disaffirmance.
• C) ab initio.
• D) restitution.

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Definitions:

Interest Free

A loan or credit arrangement where the borrower is not required to pay any interest on the borrowed amount.

Consolidated Balance Sheet

A financial statement that aggregates the financial positions of a parent company and its subsidiaries, presenting as if the group were a single entity.

Dividends

Distributions from a company to its shareholders, representing the earnings of the corporation that are distributed among its stockholders.

Consolidated Balance Sheet

A financial statement presenting the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as one entity.