To Avoid Problems,many Courts Hold a Contract to Be Bilateral

question 39

Multiple Choice

To avoid problems,many courts hold a contract to be bilateral:

• A)only as a last possible resort.
• B)whenever possible.
• C)in a way different from the approach taken by the "Restatement."
• D)occasionally.

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Definitions:

Flotation Costs

The financial outlay a firm encounters when releasing new securities, involving charges for legal matters, underwriting, and registering the issuance.

Issuance

The act of making something available or distributing it officially, commonly used in the context of financial securities being issued to the public.

New Securities

Financial instruments recently issued by a corporation or government entity to raise funds from investors.

Cost of Equity

The theoretical payment a company offers to its shareholders as compensation for the risk they assume by investing their funds.