A Clause Apportioning the Liability and Responsibilities of the Parties

question 63

Multiple Choice

A clause apportioning the liability and responsibilities of the parties in the event of an unforeseeable occurrence, such as a typhoon, tornado, or other disaster is a(n) :

• A) act of state clause.
• B) OPIC clause.
• C) letter of credit.
• D) force majeure clause.

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Definitions:

Cash Outlay

The total amount of cash that is spent by a business or organization for certain purposes or activities, including investments or expenses.

Present Value Factors

Quantitative metrics used to calculate the current worth of a future sum of money or stream of cash flows given a specific discount rate.

Present Value

The value today of a sum of money or cash flows expected in the future, calculated with a certain rate of return.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.