The Best Way to Maintain Your Credit Rating Is To

question 11

Multiple Choice

The best way to maintain your credit rating is to:

• A)use credit sparingly.
• B)pay cash for your purchases.
• C)repay your debts on time.
• D)declare a Chapter 7 bankruptcy.
• E)use as many credit cards as you can.

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Definitions:

Condition Precedent

A condition precedent is a condition or event that must occur before a party is required to perform a contractual obligation or before a contract becomes effective.

Contractual Obligation

A legal duty borne out of a contract, requiring a party to act or refrain from acting in a certain way.

Uncertain Future Event

An uncertain future event is an event or occurrence that may or may not happen, impacting plans, decisions, and outcomes depending on its eventual realization or lack thereof.

Quasi-contract

A legal concept where a court enforces an obligation on parties as if a contract existed, to prevent unjust enrichment.