Severin Leased a Small Shop from Matthew for a Five-Year

question 38

True/False

Severin leased a small shop from Matthew for a five-year term. The shop was located in a small town. Any lease for a term of more than three years must be in writing and under seal to comply with the Statute of Frauds.

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Definitions:

Car Salesman

A person who sells new or used cars at a dealership and is often involved in negotiating prices and financing terms with buyers.

Dealer

An individual or firm involved in the business of buying and selling securities for their own account or for others.

Agency Costs

Costs arising from the conflict of interest between a principal (such as a shareholder) and an agent (such as a company manager), including monitoring and contracting costs.

Moral Hazard

A situation in economics where one party can take risks because they do not bear the full consequences of their actions, often due to asymmetric information or a disconnect between actions and consequences.