To Be Enforceable, a Memorandum Evidencing an Oral Contract Must

question 38

True/False

To be enforceable, a memorandum evidencing an oral contract must include the essential terms of the contract.

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Definitions:

Margin Of Safety

A financial ratio that measures the difference between actual sales and the break-even point, indicating the cushion a company has before incurring a loss.

Break-Even Sales

The point at which total revenues equal total costs, resulting in zero profit.

Operating Leverage

A financial metric that measures the degree to which a firm or project can increase operating income by increasing revenue.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest, indicating the profitability of its core business activities.