In Which of the Following Situations Are the Parties to an Agreement

question 72

Multiple Choice

In which of the following situations are the parties to an agreement that is expressed to be 'subject to legal advice' able to change their minds about the agreement prior to the legal advice?

• A)The parties intend the agreement to be legally enforceable immediately and simply propose to have the agreement restated more formally.
• B)The parties intend the agreement to be legally enforceable immediately but they also intend to make another agreement that will eventually be substituted for the first agreement.
• C)The parties do not intend the agreement to be legally enforceable until the legal advice is received.
• D)The parties intend the agreement to be legally enforceable immediately but they also intend to terminate the agreement if recommended by the legal advice.

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Definitions:

Quarterly

Occurring or produced every quarter of a year (every three months).

Annual Interest Rate

The percentage of a sum of money charged for its use or paid to investors, calculated annually.

Logarithmic Equation

An equation that involves the logarithm of an expression equal to a value or another logarithm.

Compounded Monthly

Interest is compounded monthly when it is calculated and added to the principal sum of an investment or loan each month.