In Contract Law,the Presence of Which of the Following Elements

question 61

Multiple Choice

In contract law,the presence of which of the following elements would immediately alert a court to the possibility that an agreement may be voidable due to duress?

• A) An error by one or both parties seriously undermines a contract.
• B) The use of a threat of physical harm resulted in a contract.
• C) Unfair manipulation compromises one party's free will.
• D) A false statement of fact causes someone to enter a contract.

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Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuer, often used in the legal capital of a company.

Paid-in Capital

The amount of capital provided by shareholders in exchange for stock, representing the funds raised by issuing shares above the par value.

Treasury Stock

Stocks that have been distributed and subsequently bought back by the issuing corporation, diminishing the number of shares available for trading on the public market.

Acquisition Cost

The total cost associated with acquiring an asset, including the purchase price and all related expenses necessary to bring the asset to a condition ready for its intended use.