Which One of the Following Statements Accurately Describes the Operation

question 100

Multiple Choice

Which one of the following statements accurately describes the operation of a condition subsequent?

• A) This occurs when one party shows up at the right time and place ready, able, and willing to carry out his obligations under the contract.
• B) This is a term in a contract that must be met before the contract becomes fully operational.
• C) This occurs when some event that the parties have not anticipated makes performance radically different from what they agreed to.
• D) There is no such thing recognized in the common law.
• E) This is a term in the contract that provides for the premature cessation (ending) of the parties' obligations upon the occurrence of some particular event.

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Definitions:

Bound

In legal terms, it refers to being legally or ethically obligated to do something.

Declare And Distribute

The process by which a company announces and then allocates dividends to its shareholders.

Dividends

Payments made by a corporation to its shareholder members, derived from the company's profits.

Excess Solvency

refers to the situation where a company holds significantly more assets or financial reserves than the minimum required by regulators to cover its liabilities and potential claims.