Question: Ralph LP has an ongoing concern about the financial condition of their licensees. They are willing to enter into this agreement only because Merchandisers's most

Ralph LP has an ongoing concern about the financial condition of their licensees. They are willing to enter into this agreement only because Merchandisers's most recent financial statements showed substantial financial strength. Ralph LP wants the contract to reflect their reliance on those financial statements. In addition, Ralph LP wants the right to terminate this agreement if Merchandisers's net worth as at the end of any fiscal year during the term of the contract drops below $15 million. Stark, Tina L.; Llorente, Monica L.. Drafting Contracts: How and Why Lawyers Do What They Do (Aspen Coursebook Series) (p. 149). Aspen Publishing. Kindle Edition

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