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So-Called Morris Trust Transactions Tax Code Rules Restrict How Certain

question 115

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So-called Morris Trust transactions tax code rules restrict how certain types of corporate deals can be structured to avoid taxes.


Definitions:

Contract Price

The agreed upon sum of money that a buyer will pay to a seller in exchange for the fulfillment of a service or delivery of a good.

Express Condition

A clearly defined and articulated term or stipulation within a contract that must be met for the contract to be fulfilled.

Implied Condition

A term or condition in a contract not expressly stated but assumed to exist based on the nature of the agreement and the parties' intentions.

Constructive Condition

A condition inferred by law in contracts, implying that certain promises must be fulfilled before other corresponding duties are required.

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