Which of the Following Is True in Cases Where Only

question 89

Multiple Choice

Which of the following is true in cases where only one party drafts the contracts, which contain terms that appear vague and ambiguous to the other party?

• A) The court will give the terms the meaning as per trade usage.
• B) The court will reject the non-drafting party's attempt to reinterpret the terms after the contract has been signed.
• C) The court will declare the drafting party's behavior as a tort due to intentional ambiguity of terms.
• D) The court will interpret the terms as they mean in the common language.
• E) The court will interpret the ambiguous and vague terms against the party that drafts them.

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Definitions:

Cash Payments

Transactions where the payment for goods or services is made in cash at the time of purchase.

Accounts Payable

Liabilities representing amounts owed by a company to suppliers for goods and services received but not yet paid for.

Credit Entries

Accounting entries that increase liabilities or equity or decrease assets, reflecting gains to a company's balance sheet.

Expense Account

An income statement account that represents the cost of goods sold or services provided to generate revenue.