In Order to Reach a Legally Enforceable Agreement, the Parties

question 32

Multiple Choice

In order to reach a legally enforceable agreement, the parties to an agreement:

• A) Need only reach broad agreement on the substance of the contract.
• B) Must agree to more than just the substance of the contract.
• C) Must expressly agree to every term of the agreement.
• D) Cannot leave any details to be worked out later.

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Definitions:

Organization Costs

Expenses related to the formation of a corporation, partnership, or other entity, such as legal and accounting fees.

Amortized

The gradual reduction of a debt over a period of time through regular payments of principle and interest.

Intangible Assets

Assets that lack physical substance but hold value for a company, such as patents, trademarks, and goodwill.

Required Disclosure

Information that companies are obligated to provide in their financial reports to ensure transparency and to comply with regulatory standards and accounting principles.