Oscar Orally Agrees with Poppy's Pizza to Provide Delivery Service

question 32

Multiple Choice

Oscar orally agrees with Poppy's Pizza to provide delivery service to its customers for nine months. This contract is enforceable by

• A) none of the choices.
• B) either Oscar or Poppy's.
• C) any interested third party, such as a Poppy's customer.
• D) Poppy's only.

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Definitions:

Financial Lease

A long-term, non-cancellable lease contract where the lessee is responsible for maintenance and has the option to acquire ownership at the end of the lease term.

Capital Lease

A lease agreement that allows a lessee to effectively purchase an asset over time through lease payments, characterized by the transfer of ownership rights of the asset from the lessor to the lessee.

Accountants

Professionals who practice accounting, which involves financial reporting, tax, auditing, and analysis.

Operating Lease

A lease agreement for the use of equipment or property for a shorter period than the asset's life expectancy, without transferring ownership rights.