The Right of a Seller or Lessor to Refuse to Send

question 43

Multiple Choice

The right of a seller or lessor to refuse to send goods to a buyer or lessee upon breach of a sales or lease contract by the buyer or lessee or the insolvency of the buyer or lessee is known as the ________.

• A) right to recover purchase rent
• B) right to reclaim goods
• C) right to withhold delivery
• D) right to dispose of goods

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Definitions:

Cash Sales

Transactions where customers pay for goods or services in cash at the point of sale, resulting in immediate revenue.

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay for them at a later date.

Loss from Sale

An unfavorable difference between the selling price of an asset and its book value, leading to a financial loss for the entity.

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.