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Classification of the Relevant Term of the Contract for Sale

question 7

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Classification of the relevant term of the contract for sale of goods is essential to determining whether the goods sold by description actually correspond with the description.


Definitions:

Retaining Earnings

The practice of holding onto a company's profits to reinvest in the business rather than distributing them as dividends to shareholders.

Net Worth

The total assets minus total outside liabilities of an individual or a company.

Interest Rate

The cost of borrowing money or the return on savings, expressed as a percentage of the principal.

Annual Interest Rate

The percentage of the principal that is paid as a fee over a period of one year for borrowing or saving money.

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