Which one of the following types of liabilities represents a duty not contractually present but which may nevertheless exist due to ethical principles of fairness?
A) Deferred credits B) Constructive obligations C) Equitable obligations D) Contingent liabilities
Please explain.
Keys Co. is located in Florida. An evacuation has been ordered due to Hurricane Edward, which is headed in the direction of Keys. Keys should record a contingent liability prior to the evacuation.
a. True, WHY?
b. False, WHY?