Can a Company Hold a "Provision","just in Case" of an Emergency

question 22

Multiple Choice

Can a company hold a "provision","just in case" of an emergency?

• A) No. "Just in case" is not a good enough reason
• B) Yes. In fact provisions are an essential part of "prudence"
• C) No. Provisions can never be held
• D) Yes. Companies have an obligation to build provisions for all sorts of scenarios

---

Definitions:

Article 2

A section within the Uniform Commercial Code (UCC) that deals with the sale of goods in the United States.

Ucc

The Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Oral Contract

A verbal agreement between parties that is legally binding, although difficult to prove in court without witnesses or supporting documentation.

Written Confirmation

A document that provides proof of an agreement or transaction, detailing the specific terms and conditions agreed upon by the parties involved.