If a Confidential Relationship Exists Between Parties to a Contract,the

question 29

True/False

If a confidential relationship exists between parties to a contract,the law presumes that undue influence exists if it appears that the dominant party has gained at the other party's expense,but the presumption can be rebutted by evidence that it was not exercised.

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Definitions:

Operating Activities

Activities directly connected to the primary revenue-producing operations of a company, reported in the statement of cash flows.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset as it is used.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses, indicating the profit made during a specific period.