Which of the Following Is True of Rescission

question 78

Multiple Choice

Which of the following is true of rescission?

• A) It is a court order compelling a party to perform in such a way as to meet the terms of the contract.
• B) It is sought by plaintiffs who wish to be in the position they were in before entering into the contract.
• C) It refers to the correction of terms in an agreement so that they reflect the true understanding of the parties.
• D) It is a temporary or permanent order of the court preventing a party to a contract from doing something.

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Definitions:

Zero Balance Account

A zero balance account is a type of bank account that maintains a balance of zero dollars by automatically transferring funds from a master account in the exact amount of transactions clearing the account.

Line of Credit

A flexible loan from a bank or financial institution, where a borrower can access funds up to a specified limit at any time.

Lockbox System

A service provided by banks to process payments quickly by allowing companies to have their customers send payments to a special post office box.

Disbursement Float

The time lag between when a payment is issued by a payer and when the funds are actually withdrawn from the payer's account.