A Covenant That Specifies a Required Minimum Level of Net

question 82

True/False

A covenant that specifies a required minimum level of net worth and working capital is a compliance covenant.

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Definitions:

Quasi-Contract

A legal concept where a court imposes a contractual obligation on one party to prevent unjust enrichment at the expense of another party.

Indemnity

A contractual obligation of one party to compensate for the loss or damage incurred by another party.

Wager

An agreement between two parties where the outcome of a specified event leads to the transfer of something of value from the loser to the winner.

Binding Contract

A legal agreement between parties that is enforceable by law, requiring all signatories to fulfill their respective obligations.