When a Storm Erupts Outside Reba's Diner, Reba and Shaw

question 3

Multiple Choice

When a storm erupts outside Reba's Diner, Reba and Shaw quickly enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Reba's customers. The terms of this contract are defined by

• A)the conduct of the parties.
• B)the written words of the parties.
• C)the unforeseeable storm that gave rise to the deal.
• D)the fortuity of the deal's timing and the parties' proximity.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for securities or loans.

Annual Dividend

The total dividend payments a company makes to its shareholders in one year.

Increase Annually

A repeated growth or rise in value or amount each year.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profits through dividends and/or capital appreciation.