Which of the Following Statements Is the Best Description of a 'Condition

question 18

Multiple Choice

Which of the following statements is the best description of a 'condition'?

• A)A term in a contract which cannot be classified until after the breach has occurred and the seriousness of the effects of the breach can be ascertained.
• B)An essential term in a contract,non-performance of which may result in rescission and/or damages to the plaintiff.
• C)A term which must be satisfied before a contract can come into existence.
• D)A term in a contract which provides that the contract will terminate on the happening of a particular event.

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Definitions:

Competing Firm

A company that produces goods or services that are similar to those of another company, thereby participating in the same market.

Colluding Oligopoly

A market situation where a small number of firms agree to manipulate market conditions, such as price or output, for mutual benefit.

Industry Profit

The total earnings before tax and interest of firms within a particular industry, after all expenses have been deducted from revenues.

Identical Cost Structures

Situations in which businesses have the same fixed and variable costs in their production processes.