Which of the Following Would Provide That a Supplier Will

question 43

Multiple Choice

Which of the following would provide that a supplier will not be liable to the retailer if it is fails to deliver products to it on time?

• A) a liquidated damages clause
• B) a condition precedent
• C) an exemption clause
• D) a limitation of liability clause

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Definitions:

Unenforceable Contract

A contract that is not legally binding and cannot be enforced by law due to certain deficiencies or lack of key requirements.

Adequacy of Consideration

A legal principle that examines whether the value exchanged in a contract is fair and reasonable to all parties involved.

Contract Formation

The process by which parties agree on the terms of a contract, leading to a binding agreement; typically involves offer, acceptance, consideration, and mutual intent.

Past Consideration

A concept in contract law that refers to a benefit or act that has already been given or performed before the promise is made, which is not valid consideration for a current contract.