A Standard Form Business Contract Requires Independent Legal Advice to the Party

question 52

Multiple Choice

A standard form business contract requires independent legal advice to the party agreeing to the terms in order to be contractually binding

• A)whenever a signature is required.
• B)only when its terms are onerous or unusual.
• C)only when its terms are on the back of a ticket.
• D)only in the case of exclusion clauses.
• E)not in any circumstances.

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Definitions:

Acquisition Differential

The difference between the cost of an acquisition and the fair value of the net identifiable assets acquired.

Ownership Interest

Refers to the percentage or portion of a company that is owned by a shareholder, indicating a claim on assets and possibly a right to the income of the company.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing directors and approving company policies.