The Principle That Contract Terms Apply Only to the Actual

question 182

Short Answer

The principle that contract terms apply only to the actual parties to the contract is known as ________.

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Definitions:

Managerial Control

A theory of corporate management that favors insulating managers from shareholders by limiting the shareholders’ power to vote and by making it difficult for the shareholder to sue managers.

Outstanding Shares

Represents the total number of shares of a corporation's stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability protection of a corporation.

Partnership

An association of two or more persons to carry on a business for profit.