Which of the Following Would Automatically End a Contract with a Supplier

question 52

Multiple Choice

Which of the following would automatically end a contract with a supplier if the buyer's sales fall below a stated level?

• A) an exemption clause
• B) a condition precedent
• C) a liquidated damages clause
• D) a condition subsequent

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Definitions:

Incorporate

The process of legally forming a corporation, which is a type of business entity recognized as separate from its owners.

Articles Of Incorporation

The document that is filed with the appropriate state official, usually the secretary of state, when a business is incorporated and that contains basic information about the corporation.

Registered Office

The official address of a company or organization, registered with the appropriate legal authorities, where official documents are sent.

Good Faith

A principle that emphasizes honesty, fairness, and sincerity in the execution of obligations or dealings.