An Agreement Is Not Binding When

question 19

Multiple Choice

An agreement is not binding when:

• A) one party makes a mistake regarding a material fact but the mistake is unknown to the other contracting party.
• B) both parties make a mistake regarding a material fact.
• C) one party makes a mistake of law.
• D) both parties make a mistake in judgment.

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Definitions:

Transfer Taxes

Taxes imposed by a state or local government on the transfer of ownership of property, such as real estate, from one party to another.

Available-For-Sale

A classification for financial assets, indicating that the asset can be sold in the future, and is not held for trading or intended to be held to maturity.

Dividends

Profits distributed by a corporation to its shareholders, usually in the form of cash or additional stock.

Common Stock

Common stock represents shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends, albeit with lower priority than preferred stock in dividend payment and asset liquidation.