A Power of Avoidance Held by a Party May Be

question 57

Multiple Choice

A power of avoidance held by a party may be lost if:

• A) the contract is disaffirmed.
• B) there are delays in exercising the power.
• C) the party lacks contractual capacity.
• D) the rights of third parties are terminated.

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Definitions:

Horizontal Merger

A merger between two or more companies operating in the same industry at the same stage of production.

Vertical Merger

A business consolidation that occurs between companies that operate within the same supply chain, typically involving a manufacturer merging with a supplier or a distributor.

Conglomerate Company

A conglomerate company is a large corporation composed of diverse companies operating in various industries or sectors, typically under one corporate group.

Home-Based Businesses

Firm operated from the residence of the business owner.