A Contract Clause Requiring Performance "To the Satisfaction" of the Obligee

question 24

True/False

A contract clause requiring performance "to the satisfaction" of the obligee is too subjective to be enforced.

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Definitions:

Legal Fiction

A fact assumed by courts for legal reasoning purposes, despite its actual falsehood, often used to achieve equity or adhere to a legal doctrine.

Corporation

A legal entity recognized by law, separate from its owners, with rights to own property, incur debt, sue, and be sued.

General Security Agreement

A contract that creates a security interest in all assets of the borrower, present and future.

Shareholder's Loan

A loan given to a company by one of its shareholders, typically used for startup or growth financing.