The Right of a Minor or Other Incompetent Party to Avoid

question 24

Short Answer

The right of a minor or other incompetent party to avoid a contract is called ____________________.

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Definitions:

Non-recognition

A tax principle allowing certain transfers or exchanges of property to occur without immediate tax consequences.

Involuntary Conversion

A forced change of property ownership or destruction, such as through theft or natural disaster, that may have tax implications.

Installment Method

is an accounting technique used to recognize revenue and expenses over time as payments are made or received, rather than at the time of transaction.

Basis

The amount of an investment in property for tax purposes; used to calculate gain or loss on a sale or other disposition of the property.