Explain the Two Legal Presumptions That Assist Courts to Determine

question 31

Essay

Explain the two legal presumptions that assist courts to determine the intention of parties that enter into agreements with each other.What does it mean when these presumptions are called 'rebuttable'?

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Definitions:

Paid-In Capital

The quantity of funds a corporation has obtained from its investors as compensation for shares of the company's stock.

Paid in Capital in Excess

Funds received from shareholders over and above the par value of the stock issued, also known as additional paid-in capital.

Preferred Stock

A type of stock that gives its holders preference over common stockholders in terms of dividends and asset liquidation.

Building

An asset category in accounting representing the physical structure owned by a company, used for operations or rental.