It Is Important to Determine the Clients' Objectives When Drafting

question 9

True/False

It is important to determine the clients' objectives when drafting a contract.

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Definitions:

Restrictive Covenants

Restrictive covenants are clauses in contracts that impose restrictions on actions that parties to the contract can take, often used in employment agreements and real estate transactions to protect business interests.

Bond Rating

An assessment of the credit quality of a bond, generally given by a rating agency.

Specific Assets

Assets that are designated for a particular use or are unique to a business's operation.

Risk

The possibility of losing some or all of an investment, or the uncertainty surrounding the return on an investment.