Which of the Following Is a Provision of Obligation of Good-Faith

question 41

Multiple Choice

Which of the following is a provision of obligation of good-faith dealings under Section 1-203 of the Uniform Commercial Code (UCC) ?

• A) Consideration is required for modification of a sales contract made in good faith.
• B) In determining the intent a reasonable person would have had, due consideration is to be given to any practices which the parties have established between themselves.
• C) Every contract or duty within this Act imposes an obligation of good faith in its performance or enforcement.
• D) If the court finds the contract to have been unconscionable at the time it was made, the court may refuse to enforce the contract.
• E) A proposal for concluding a contract addressed to one or more specific persons constitutes an offer if it is sufficiently definite and indicates the intention of the offeror.

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Definitions:

Amortization

The gradual reduction of a debt or the spreading of an intangible asset's cost over its useful life.

Depreciation Expense

The allocation of the cost of a tangible fixed asset over its useful life, reflecting the asset's consumption or wear and tear.

Book Value

The net value of a company's assets minus its liabilities, often used to evaluate the worth of a company.

Constant Percentage

A method or rate that remains unchanged over a specified period or under certain conditions.