If, Before the Time for Contract Performance, One Party Communicates

question 20

True/False

If, before the time for contract performance, one party communicates an intent not to perform, the other party can only wait to see if the repudiating party will decide to perform.

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Definitions:

Treasury Bonds

Long-term government securities issued with the purpose of financing government spending and are seen as low-risk investments.

Treasury Bills

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

Volatile

Describes an investment or market that shows frequent and significant price changes over a short period of time.

Nominal Rate of Interest

The rate of interest before adjusting for inflation, reflecting the rate at which money grows over time.