Contracts Where One Party, Being in a Position of Strength

question 179

Multiple Choice

Contracts where one party, being in a position of strength, takes advantage of the other party, and which are held to be unenforceable, are called:

• A) voidable contracts
• B) contracts in restraint of trade
• C) exculpatory agreements
• D) contracts with public servants
• E) none of the other choices

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Audit

An independent examination of financial information of any entity, whether profit oriented or not, regardless of its size or legal form when such an examination is conducted with a view to express an opinion thereon.

Economic Resources

Assets or inputs that are utilized in the production of goods or services, including natural, human, and financial resources.

Liabilities

Liabilities are financial obligations or debts that a company owes to other entities, which are expected to be paid in the future.