A Hostile Takeover Is a Method of Seizing Control of a Company

question 21

True/False

A hostile takeover is a method of seizing control of a company and involves an action taken against the opposition of incumbent management. However, this action is typically motivated by a desire to control the firm's assets and is rarely motivated by a low share price.

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Definitions:

Condition Precedent

A clause in a contract that requires certain conditions to be met before the contract or parts of it becomes enforceable.

Condition Subsequent

A condition in a contract or agreement that, if it occurs, terminates the contract or agreement or changes the parties' obligations under it.

Incidental Damages

Collateral damages that result from a breach of contract, including all reasonable expenses that are incurred because of the breach; damages that compensate a person injured by a breach of contract for reasonable costs he incurs in an attempt to avoid further loss.

Consequential Damages

refer to losses that result indirectly from a breach of contract, extending beyond the direct and immediate damage.