The phrase refers back to the frequency with which a selected authorized idea seems on a standardized examination for aspiring attorneys. It considerations monetary preparations the place curiosity accrual relies on the prevalence of a future occasion. For example, contemplate a mortgage settlement the place the rate of interest is tied to the borrower attaining a sure income goal; if the goal just isn’t met, the rate of interest stays at a decrease, predetermined stage.
Understanding this subject material is essential for candidates getting ready for the bar examination as a consequence of its potential implications for varied authorized fields, together with contracts, secured transactions, and chapter. Traditionally, the inclusion of such matters on the examination has fluctuated, reflecting evolving traits and priorities inside authorized training and follow. A powerful grasp can improve a candidate’s total efficiency and exhibit a complete information of elementary authorized ideas.
