A Contract Most Likely Will Be Declared Unconscionable If

question 12

Multiple Choice

A contract most likely will be declared unconscionable if

• A)it allows for an extremely high rate of interest to be charged.
• B)it contains a cancellation clause.
• C)it is oppressive and one-sided.
• D)it is signed by a minor for an item of luxury.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered on credit.

Notes Payable

Written agreements in which one party agrees to pay another party a certain sum of money at a future date or on demand.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Capital

Financial assets or the resources that businesses use to fund their operations and growth, including cash, properties, and equipment.