Escalators Present in a Contract Must State

question 6

Multiple Choice

Escalators present in a contract must state:

• A)at what interval the contract price should automatically change at a fixed rate.
• B)when the price will change and by what formula the new price will be calculated.
• C)when the contract should be terminated and how the cost of termination should be shared.
• D)when the contract should be renewed and the terms governing the renewal.

---

Definitions:

Competing Business

A company or enterprise that operates in the same industry or market as another and vies for the same set of customers.

Uniform Partnership Act

A standard set of laws adopted by states to regulate business partnerships, aiming at consistency across jurisdictions.

Liquidated Assets

Assets that have been converted into cash or cash equivalents, often during the process of paying off debt or during liquidation of a company.

Partnership Debt

Partnership debt is the financial obligations that a partnership entity owes to creditors, which are typically shared among the partners according to their agreement.