The Rule of Equitable Exception States That an Executory Contract

question 93

True/False

The rule of equitable exception states that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.

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Definitions:

Accounts Receivable Balance

The accounts receivable balance is the total amount owed to a company by its customers for goods or services delivered on credit but not yet paid for.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for general purposes including statutory reporting and personal timekeeping.

Sales Estimate

An approximate calculation or judgment of the amount of sales a company expects to achieve in a specific period.

Net Working Capital

A measure of a company's liquidity, operational efficiency, and short-term financial health, calculated as current assets minus current liabilities.