Range Free Farms Enters into a Contract to Sell Sara's

question 60

Multiple Choice

Range Free Farms enters into a contract to sell Sara's Market a truckload of eggs. Range Free fails to deliver. Sara's Market

• A) must pay for the eggs to avoid a breach of contract.
• B) does not have to pay for the eggs because Range Free did not perform.
• C) must pay for the eggs, but can sue Range Free for breach of contract.
• D) does not have to pay for the eggs, but then cannot sue Range Free.

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Definitions:

Bank Indebtedness

A financial term referring to the amount of debt a company has borrowed from banking institutions.

Highly Liquid

Assets that can be easily and quickly converted into cash without significant loss in value.

Trading Investments

Securities purchased and held primarily for selling them in the near term with the goal of generating short-term profits.

Bank Overdrafts

Happens when the amount taken out of a bank account surpasses what is in the account, leading to a negative balance.