A Contract Is Interpreted to Give Effect To

question 29

Multiple Choice

A contract is interpreted to give effect to:

• A) the intent of the parties.
• B) what the court believes is a fair contract.
• C) what the defendant thought the contract meant.
• D) what will be best for the economic life of the community.

---

Definitions:

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales

Revenues earned by a company from the sale of goods or services before any expenses are deducted.