A Party May Have the Capacity to Enter into a Valid

question 6

True/False

A party may have the capacity to enter into a valid contract but also have the right to avoid liability under it.

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Definitions:

Progressive Structure

A tax system where the tax rate increases as the taxable base amount increases, often applied to income tax.

Income-tax System

A government system for assessing and collecting taxes on the income of individuals and businesses.

Ability-to-pay Principle

A taxation principle suggesting that taxes should be levied according to an individual's or entity's capacity to pay, typically measured by income or wealth.

U.S. Labor Force

The total number of people in the United States who are employed or actively seeking employment.