Which of the Following Agreements Is Likely to Be Too

question 12

Multiple Choice

Which of the following agreements is likely to be too uncertain to be enforced?

• A) 'The supplier agrees not to accept offers from third parties during a six week negotiation period with the purchaser'.
• B) 'The vendor agrees to sign the contract of sale, if the purchaser obtains a comfort letter from his bank'.
• C) 'In the event of a crash in the market value of the product, the parties agree to renegotiate a new price in good faith'.

---

Definitions:

Accounting System

A methodical procedure of recording, measuring, and communicating financial information for decision making in business.

Intangible Assets

Assets that lack physical substance but possess economic value, including intellectual property, trademarks, and goodwill.

Cost Allocation

The process of distributing or assigning an organization's costs, or expenses, across various departments, projects, or products.

Asset Acquisition

Asset acquisition refers to the process of obtaining control over assets, typically through purchase or lease, for use in operations.