A Contract for the Sale of Business Often Includes Several

question 5

Multiple Choice

A contract for the sale of business often includes several alternative restraint of trade clauses,such as 'for three years and five kilometres' or 'two years and three kilometres' etc.The buyer inserts these alternatives because:

• A)courts cannot alter the wording of a restraint of trade clause.
• B)courts have the power to choose the most reasonable clause and to 'sever' (cut)the others.
• C)courts require this type of contract to offer at least two alternative restraint of trade clauses.
• D)all of the above are correct.
• E)A & B only are correct.

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Definitions:

Non-Cumulative

Refers to dividends or other types of distributions that, if not paid by a company in a given period, are not required to be paid at all.

Dividend Yield

The ratio that indicates how much dividends a company issues each year in relation to the price of its shares.

Par Value

Par value is the nominal or face value of a bond, share, or other financial instrument, set at the time of issue.

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to their present value.