In a Conflict Between the Express Terms of the Contract

question 27

Multiple Choice

In a conflict between the express terms of the contract and trade usage:

• A)trade usage prevails.
• B)express terms prevail.
• C)the contract is invalid.
• D)implied terms prevail.

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Definitions:

Direct Expense

A cost that can be directly attributed to the production or sale of specific goods or services in a business.

Indirect Expense

Costs that are not directly tied to a specific product or service but are necessary for the overall operation of a business, such as utilities or rent.

Rent

The cost incurred for using properties or equipment owned by another party for a specified period.

Direct Expense

Costs that can be directly tied to the production of specific goods or servicing of specific services, such as raw materials and labor.