When a Contract Anticipates Some Catastrophic Event, Such as a Riot

question 15

Multiple Choice

When a contract anticipates some catastrophic event, such as a riot, invasion, earthquake, or flood that will interfere with the performance of the contract, this is referred to as a

• A) force majeure clause.
• B) condition precedent.
• C) "subject to" clause.
• D) condition subsequent.
• E) frustration clause.

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Definitions:

Utilities

Essential services provided to the public, including electricity, gas, water, and sewage services, often regulated due to their importance and natural monopoly characteristics.

Agriculture

The practice of cultivating the land, producing crops, and raising livestock for human consumption and use.

Allocatively Efficient

Allocative efficiency occurs when resources are distributed in a way that maximizes the net benefit to society.

Productively Efficient

Refers to a situation where an economy or firm produces goods at the lowest possible cost per unit, utilizing resources in the best way possible.