A Contract That Has No Binding Effect on the Parties

question 23

Short Answer

A contract that has no binding effect on the parties who made it is a(n)____________________ contract.

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Definitions:

Indirect Expenses

Costs that are not directly tied to a specific product, service, or department and need to be allocated, such as utilities or rent.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.

Indirect Costs

Expenses not directly tied to a specific product or service, such as overhead, administrative salaries, and utilities.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.