Which Party to a Contract Absorbs the Majority of Cost

question 22

Multiple Choice

Which party to a contract absorbs the majority of cost risk when a Firm-Fixed-Price (FFP) contract is used?​ 

• A) the seller 
• B) the buyer 
• C) the cost risk is equally shared. 
• D) the insurer

Differentiate between valid and invalid consideration in contract law.

Recognize the legal exceptions that permit enforcement of promises even in the absence of consideration.

Understand the legal concept of promissory estoppel and its application.

Distinguish between bilateral and unilateral contracts and their respective consideration requirements.

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Definitions:

Linear Equation

A mathematical statement where the sum of two variables is equal to a constant, forming a straight line when graphed.

Solve

The process of finding the values that satisfy an equation or inequality.

Conditional Equation

An equation that is true for certain values of its variables, often used in algebra to describe a relationship subject to specific conditions.

Identity Equation

An equation that is true for all values of the variable, typically used to express fundamental algebraic properties.