In Some States,the Courts Will Examine the Amount of Consideration

question 65

True/False

In some states,the courts will examine the amount of consideration and will allow a party to avoid a contract where the consideration is so inadequate that it "shocks the conscience" of the court.

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Definitions:

Useful Life

The expected period over which a fixed asset is projected to be usable by a company, affecting its depreciation or amortization schedules.

Maintenance and Repairs Expense

Costs incurred to keep property, plant, and equipment in operating condition and to fix unexpected breakdowns.

Closing Costs

These are fees and expenses, aside from the price of the property, paid by buyers and sellers when transferring ownership of a property.

Freight-In

The cost of transporting goods into a warehouse or to the buyer, which is typically included in the cost of goods sold.