An Onerous Contract Is One in Which the Unavoidable Costs

question 60

True/False

An onerous contract is one in which the unavoidable costs of satisfying the obligations outweigh the economic benefits to be received.

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Definitions:

Receive

To obtain or be provided with something.

Pay

The compensation received by an employee or worker in exchange for their labor or services.

Eurodollars

Deposits denominated in U.S. dollars at banks outside the United States, thus not subject to U.S. banking regulations.

Dollar-denominated Deposits

Bank deposits made in U.S. dollars rather than the local currency, often used in international trade or by investors seeking currency stability.