List and Briefly Describe the Five C's of Credit

question 34

Essay

List and briefly describe the five C's of credit.

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Definitions:

Agency Relationship

A legal arrangement in which one party (the agent) acts on behalf of another party (the principal).

Agent's Acts

Refers to the actions performed by an individual (the agent) on behalf of another person or entity (the principal) with the principal's consent.

Voluntary Consent

Consent freely given without coercion, where the individual fully understands what they are agreeing to.

Consideration

In contract law, it's the value that is exchanged between parties in a contract, making the agreement legally binding.