Between the Time When a Contract Is Formed and the Date

question 7

Multiple Choice

Between the time when a contract is formed and the date of performance, a promisee is entitled to

• A) notice of any intention on the party of a party to breach the contract.
• B) notice of all conditions and warranties.
• C) a continuous expectation of performance.
• D) performance of the warranties.
• E) notice of any anticipatory breach.

---

Definitions:

Cost Method

An accounting approach for investments, outlining that an investment is recorded at its acquisition cost, adjusting for any dividends received.

Deferred Tax Asset

An accounting term representing an asset that may be used to reduce any future tax liability originating from temporary timing differences between the accounting and tax treatment of transactions.

Deferred Tax Liability

Future tax obligations due to temporary differences between the accounting and tax treatment of transactions.

Tax Basis

The value of a taxpayer's investment in property for tax purposes, used to calculate gain or loss on a sale or transfer.