When Is a Particular Statement More Likely to Be a Term

question 12

Multiple Choice

When is a particular statement more likely to be a term of the contract rather than a mere representation?

• A)The statement was made with the intention of preventing the other party from finding any defects.
• B)The other party was asked to check or verify the statement.
• C)Both parties placed considerable importance on the statement.
• D)A long time has passed between the making of the statement and the final agreement.

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Definitions:

Personal Loans

Unsecured loans given to individuals based on their credit history and income, rather than requiring collateral.

Effective Rate

The interest rate on a loan or financial product, restated from the nominal rate as an annual rate accounting for compound interest.

Interest Charged

The cost of borrowing money, calculated as a percentage of the principal amount on a loan or credit.

Semiannual Compounding

Interest calculation method where the interest is added to the principal twice a year, leading to compound interest growth.