Sometimes a Contract Is Drafted in Such a Way That

question 45

Multiple Choice

Sometimes a contract is drafted in such a way that it fails to clearly and precisely express the essential terms of the offer. Which of the following would have the greatest influence on a court's willingness to interpret such an offer and resolve uncertainties?

• A) the terms that would have resulted from completed negotiations
• B) a stated workable formula for determining market price
• C) evidence of a clear intention of the parties to create legal relations
• D) certain matters in the agreement left to be decided in the future

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Definitions:

Merchandise To Customer

The process of selling and delivering products from a business to its customers.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, usually at the end of a financial reporting period, rather than after each transaction.

Merchandise Inventory

The total value of a company's goods that are available for sale, including raw materials, work-in-progress, and finished goods.

Cost Of Merchandise Sold

The total cost to a business of the goods sold to customers, including purchase price and additional expenses related to the sale.