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25 April, 06:31

In a contingent contract

A. monitoring is not possible.

B. the principal will be at a disadvantage.

C. the payoffs are dependent upon another variable, such as revenue or profit.

D. the risk neutral party bears the risk.

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Answers (1)
  1. 25 April, 07:02
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    C. the payoffs are dependent upon another variable, such as revenue or profit.

    Explanation:

    Contingent contracts are one of the types of contracts in which the promisor offers the responsibility only when the distinct conditions are satisfied. It works on the occurrence or non-occurance of the specific event. It relies on the happening of an unpredictable event. The contingent contract becomes void in the case when the happening of the event grows impossible.
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Home » Business » In a contingent contract A. monitoring is not possible. B. the principal will be at a disadvantage. C. the payoffs are dependent upon another variable, such as revenue or profit. D. the risk neutral party bears the risk.
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