The phrase refers back to the frequency with which a selected authorized idea seems on a standardized examination for aspiring attorneys. It issues monetary preparations the place curiosity accrual is dependent upon the incidence of a future occasion. For instance, contemplate a mortgage settlement the place the rate of interest is tied to the borrower reaching a sure income goal; if the goal just isn’t met, the rate of interest stays at a decrease, predetermined degree.
Understanding this subject material is essential for candidates getting ready for the bar examination because of its potential implications for varied authorized fields, together with contracts, secured transactions, and chapter. Traditionally, the inclusion of such subjects on the examination has fluctuated, reflecting evolving developments and priorities inside authorized training and observe. A powerful grasp can improve a candidate’s general efficiency and display a complete data of elementary authorized ideas.
