The Requirement That Each Party to a Contract Must Intentionally

question 2

Multiple Choice

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:

• A) mutual assent.
• B) consideration.
• C) legality of object.
• D) contractual capacity.

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Definitions:

Balance Sheet

A summary report detailing a company's assets, debts, and equity held by shareholders at a particular moment.

Income Statement

The financial statement that shows the revenues, the expenses, and the net income for a certain period of time.

Net Income to Net Sales

A financial ratio measuring a company's profitability by comparing net income to net sales.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.