An Assignee of a Contract Takes the Contract Subject to Equities.Explain

question 38

Essay

An assignee of a contract takes the contract subject to equities.Explain the meaning of this phrase with the use of examples.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially considered in terms of liquidity.

Indirect Method

A technique for creating a statement of cash flows where net income is adjusted for non-cash transactions and changes in working capital.

Operating Activities

Operating activities refer to the day-to-day actions a business engages in that are directly related to its primary business purpose, including production, sales, and delivery of services.

Prepaid Expenses

Costs paid in advance for goods or services, which are recognized as an asset until the actual goods or services are received.