A Legally Binding Contract That Can Be Terminated at the Option

question 450

Multiple Choice

A legally binding contract that can be terminated at the option of one of the parties is called:

• A) an executed contract
• B) a formal contract with an escape clause
• C) a void contract
• D) a parol evidence contract
• E) none of the other choices

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Definitions:

Hole

An opening through a solid body or surface, typically circular.

Allowances

The intentional difference between the maximum material limits of mating parts to ensure a certain type of fit.

Tolerances

The permissible limits or variations in dimensions, properties, or conditions of an object or system, allowing for proper function without exact precision.

Tightness

The quality or state of being fixed or secure, often referring to the absence of unwanted movement between parts.