Which of the Following Statements Is Accurate Concerning Express Conditions

question 37

Multiple Choice

Which of the following statements is accurate concerning express conditions?

• A)A court will enforce any express conditions intended by the parties.
• B)A court may refuse to enforce an express condition intended by the parties if the court determines it is unfair and harmful to the general public.
• C)A court requires strict performance if a clause of the contract expressly demands it.
• D)A court applies an objective standard whenever ruling on a personal satisfaction contract.

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Definitions:

First Theorem of Welfare Economics

A principle stating that under certain conditions, a market in equilibrium will allocate resources efficiently in a way that maximizes total social welfare.

Competitive Equilibrium

A market state where supply equals demand, leaving no incentive for price changes as long as external conditions remain constant.

Homothetic Preferences

Preferences where if a consumer prefers a bundle of goods A to B, they will also prefer a scaled-up version of A to the same scale-up of B, maintaining the same proportions.

Marginal Rate of Substitution

How quickly a consumer agrees to trade one good for another, aiming to keep their level of pleasure steady.