Which of the Following Describes the Function of an Expense

question 2

Multiple Choice

Which of the following describes the function of an expense stop in a lease?

• A)Expenses are stopped from increasing
• B)Expenses above the stop are paid by the owner
• C)Expenses above the stop are paid by the tenant
• D)Expenses below the stop are paid for by the tenant

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Definitions:

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Unconscionable

Describing actions or conditions that are so unfair or immoral that they shock the conscience, often leading to legal invalidation.

Fair Market Value

The price that property would sell for on the open market, reflecting the amount a willing buyer would pay a willing seller when neither is under pressure to buy or sell.

Consideration

In contract law, the value (such as money, an act, or a promise) that is exchanged between parties and is essential for a valid contract.