What Is the Law's Main Purpose in Imposing the Implied

question 52

Multiple Choice

What is the law's main purpose in imposing the implied covenant of good faith and fair dealing?

• A)Providing adequate remedial measures to injured parties
• B)Punishing the breaching parties in a contract
• C)Encouraging litigation regarding breach of contracts
• D)Encouraging ethical behavior in contracts

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Definitions:

Journal

A chronological record of all financial transactions that occur within a business.

Net Income

The amount of earnings remaining for a business after subtracting all costs and expenses from total revenues, also known as net profit.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period.

Debits and Credits

Accounting terms used to record changes in accounts, where debits are entries on the left side of an account and credits are entries on the right.