When Two Parties Are Involved in a Misunderstanding as to the Meaning

question 40

Multiple Choice

When two parties are involved in a misunderstanding as to the meaning of a term of the contract,which of the following is usually applied by the court to settle the matter?

• A)The court will find that there is no contract because there is no meeting of the minds.
• B)non est factum
• C)the most reasonable interpretation of the terms
• D)the equitable remedy of rectification
• E)caveat emptor

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Definitions:

Net Cash Flows

The difference between a company's cash inflows and cash outflows within a specific period.

Net Present Value

A method of evaluating investment opportunities that calculates the difference between the present value of cash inflows and outflows over a period of time.

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.