If Parties to a Contract Agree That It Will Not

question 13

Multiple Choice

If parties to a contract agree that it will not be legally enforceable until the happening of a certain event, that term of the contract is known as a:

• A)condition precedent.
• B)condition subsequent.
• C)qualified term.
• D)prior term.

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Definitions:

Resource Allocation

The process of distributing available resources among different uses identified in an economy.

Taxing Polluters

A policy approach that imposes taxes on companies or individuals who produce pollution as a means to internalize environmental externalities and encourage pollution reduction.

Positive Externalities

Benefits that affect a third party not directly involved in a transaction or activity, resulting in a positive effect on society.

Principal-Agent Problem

A dilemma in economics where one party (the agent), acting on behalf of another party (the principal), may have different goals or incentives, potentially leading to inefficiencies.