What Is the Key to All Conditional Clauses

question 17

Multiple Choice

What is the key to all conditional clauses?

• A)If a condition in a contract does not occur,public policy will require only substantial performance by the party for whom the condition failed.
• B)If a contract contains a conditional clause,the requirement of good faith will be eliminated.
• C)If a condition in a contract does not occur,one party will probably be discharged without having to perform his or her obligations under the contract.
• D)If a contract contains a conditional clause,it must be expressly written with specific language.

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Definitions:

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries have been made, used to verify the equality of debits and credits and to prepare financial statements.

Dividends Account

An account used to record the distribution of earnings to shareholders, often in the form of cash or additional shares.

Trial Balance

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Loan Requests

Loan requests involve applying for a specified amount of money from a lender, which the borrower agrees to repay with interest over a predetermined period.