In the Contract Between Bayson's Department Store and Clem's Manufacturing

question 36

Multiple Choice

In the contract between Bayson's Department Store and Clem's Manufacturing, there is a clause that allows either party to end the contract on 60-days' notice and the payment of liquidated damages, which are set at a reasonable amount. This clause is

• A) a force majeure clause.
• B) an option to terminate.
• C) a condition subsequent clause.
• D) a frustration of contract clause.
• E) an example of laches.

---

Definitions:

Gold Exchange Standard

A monetary system in which currencies are valued in terms of a specified amount of gold, and governments agree to exchange currency for gold at the set price.

Dollar Depreciation

A decrease in the value of the U.S. dollar relative to other currencies in the international exchange markets.

Japanese Yen

The official currency of Japan, symbolized as ¥ and known in the forex markets as JPY.

Mexican Peso

The Mexican Peso is the official currency of Mexico, represented by the symbol $ or MX$ to distinguish it from other dollar-denominated currencies.