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By Including the Wording 'This Agreement Is Subject to Contract

question 9

True/False

By including the wording 'this agreement is subject to contract' it is clear that the parties do not yet intend to be legally bound to a contract.


Definitions:

Derivative Suit

A legal action brought by shareholders on behalf of a corporation against third parties, typically for harm done to the corporation.

Corporate Management

The administration and control of a corporation, involving decision-making by executives and oversight by a board of directors.

Newly Issued Stock

Shares that have been recently released by a company to the public for the first time through an initial public offering (IPO) or additional issuance.

Proxy Solicitation

The process by which one shareholder asks another for his or her voting right.

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