When a Contract Anticipates Some Catastrophic Event, Such as a Riot

question 15

Multiple Choice

When a contract anticipates some catastrophic event, such as a riot, invasion, earthquake, or flood that will interfere with the performance of the contract, this is referred to as a

• A) force majeure clause.
• B) condition precedent.
• C) "subject to" clause.
• D) condition subsequent.
• E) frustration clause.

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Definitions:

Reasonable Care

A legal standard requiring individuals to act with the caution and attentiveness that a prudent person would under similar circumstances.

Delegating Authority

The process by which a person or body authorizes another person or body to perform certain tasks or make decisions on its behalf.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the profit earned on money invested.

Obey

To follow or comply with commands, restrictions, or instructions, often from an authority or rule.