When a Contract Proves to Be a Bad Bargain

question 20

Multiple Choice

When a contract proves to be a bad bargain:

• A) the injured party is never bound by the terms of the contract.
• B) courts will always imply terms that are necessary to avoid hardship.
• C) parties are generally still bound by the terms of the contract.
• D) the contract must be rewritten.

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Definitions:

Utility Function

A mathematical representation in economics that explains how individuals rank preferences or choices to maximize satisfaction.

Indifference Curves

Indifference curves represent combinations of goods between which a consumer is indifferent, showing the trade-offs in consumption that yield equal satisfaction.

Horizontal Axis

In a graph or chart, the x-axis, which typically represents the independent variable or the base for measurement comparisons.

Vertical Axis

The y-axis on a graph or chart which is usually used to measure and represent the dependent variable.