Sal Needs an Apartment Desperately Because He Wants to Leave

question 13

Multiple Choice

Sal needs an apartment desperately because he wants to leave his wife. There is a severe shortage of apartments. Sal finds one for $1,000 a month. The landlord insists Sal give a $5,000 deposit and Sal pays it. The next day Sal and his wife reconcile, so Sal wants to get out of the lease. Which of the following is true?

• A)The $5,000 payment is called a deposit in law.
• B)This deposit is forfeited automatically.
• C)Sal can attack this requirement to pay $5,000 as a penalty clause in order to get the money back.
• D)This $5,000 payment is called a down payment in law.
• E)Both A and B

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Definitions:

Current Asset

Current Assets are assets expected to be converted into cash, sold, or consumed during a company's next operating cycle or within a year, including cash, inventory, and accounts receivable.

Current Asset

Assets likely to be converted into cash, sold, or consumed within a year or normal operating cycle, such as cash, inventory, and accounts receivable.

Converted To Cash

The process of liquidating assets or investments to obtain cash, often used to meet short-term financial obligations.

Investments

Assets acquired for the purpose of generating income or profit, including stocks, bonds, real estate, or other vehicles.