The Rights Conveyed by a Contract May Be Transferred to Another

question 77

Multiple Choice

The rights conveyed by a contract may be transferred to another party by:

• A)formation.
• B)promissory estoppel.
• C)novation.
• D)quantum meruit.
• E)assignment.

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Definitions:

Bad Debt Expense

Unrecoverable amounts from accounts receivable representing financial losses for a company.

Direct Write-off Method

An accounting practice where actual bad debts are written off against income at the time they are identified as irrecoverable.

Bad Debt Expense

An expense reported on the income statement, representing the estimate of uncollectible accounts receivable.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.