Obligations That Depend on Past Events and That Are Based

question 116

True/False

Obligations that depend on past events and that are based on future transactions are contingent liabilities.

---

Definitions:

Third Party

An individual or group aside from the two primarily involved in a situation, often providing services, intervening, or affected by the actions of the main parties.

Original Parties

The entities or individuals who enter into a contract or legal agreement initially, before any assignments or transfers.

Fundamental Breach

A severe violation of a contract that permits the aggrieved party to terminate the agreement and possibly seek compensation for damages.

Exemption Clause

A contractual term that limits one party's liability for breach of contract, negligence, or other unforeseen circumstances.