A Voidable Contract Is a Contract That

question 64

Multiple Choice

A voidable contract is a contract that,

• A)like a void contract,never exists so as to give rise to rights under it.
• B)unlike a void contract,cannot be rectified.
• C)unlike a void contract,exists but does not give rise to legal rights.
• D)unlike a void contract,exists but can only be set aside by agreement of the parties to it.
• E)unlike a void contract,exists but can be set aside at the option of one of the parties to it.

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Definitions:

Net Income

The net income a company earns once all costs and taxes are subtracted from the total revenues.

Investments

Assets purchased with the expectation that they will generate income or appreciate in value over time.

Accounting Process

The sequence of activities involving the recording, classification, and summarizing of economic transactions to provide financial information.

Communicating

The process of conveying information between individuals or within an organization to ensure understanding and effective operation.