In Order to Avoid Having a Court Impose a Classification

question 52

Multiple Choice

In order to avoid having a court impose a classification of a contractual obligation as an innominate term,which of the following actions would be appropriate?

• A) Ensure that all contractual obligations are clearly described in the contract.
• B) Avoid use of ambiguous language that leads to erroneous assumptions.
• C) Avoid use of contractual promises that hold less significance or importance.
• D) Clearly set out consequences of breach at the time the contract is created.

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Definitions:

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, measuring how efficiently those assets are used to generate profit.

Total Asset Turnover

A ratio calculating how effectively a company utilizes its assets to produce sales income.

Return on Equity

A measure of a corporation's profitability, indicated by the amount of net income returned as a percentage of shareholders equity.