Courts Enforce Contracts Only If Each Party Has the Legal

question 61

Essay

Courts enforce contracts only if each party has the legal capacity to enter into a contract.Which classes of persons have limited power to contract?

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Definitions:

Net Income

The total amount of profit left over after all operating expenses, taxes, and interest have been deducted from total revenue.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced, including materials, labor, and energy costs.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent and salaries.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.