Which of the Following Is Not True of Customary Terms

question 6

Multiple Choice

Which of the following is not true of customary terms?

• A) Terms may be implied if they are customary in the particular trade or profession of the party who drafts the contract.
• B) The alleged implied term must not be inconsistent with an express term.
• C) The imported term must be well-known.
• D) The customary term must be recognised as binding.

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Definitions:

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.

Salvage Value

The predicted price that an asset will fetch when it is sold at the conclusion of its usable life.

Working Capital

The difference between a company's current assets and current liabilities, representing the liquidity available to run its operations.

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, used to cover fixed costs and generate profit.