Identify the Correct Statement About Common-Law Contracts

question 49

Multiple Choice

Identify the correct statement about common-law contracts.

• A)All common-law contracts are bilateral.
• B)Common-law contracts govern the sale of goods.
• C)Contracts between merchants are governed by common-law contracts.
• D)Common-law contracts provide more flexibility in contract formation than exists in the UCC.
• E)All common-law contracts must contain valid consideration.

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Definitions:

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, represented as a percentage of the principal amount.

Collection Float

The time period between when a check is deposited in a bank and when the funds are available, impacting the company's cash flow.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, where payments are sent to a special post office box rather than to the company.

Treasury Bills

Short-term government securities issued at a discount from their face value, with maturities ranging from a few days to 52 weeks.