Berlak Company Entered into a Contract with Charles Corporation

question 45

Multiple Choice

Berlak Company entered into a contract with Charles Corporation.Berlak agreed to provide Charles with building supplies.Charles agreed to pay a total of $18,000 at delivery.Under the contract-based view, Berlak's net contract position can be assumed to be

• A)nil
• B)$18,000
• C)$9,000
• D)$4,500

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Definitions:

"To Cash"

A term used to describe the process of converting assets or investments into cash or to settle a transaction with cash payment.

Assignee

An individual or entity to whom rights or interests are transferred by another, typically for the purpose of debt collection or in the context of contracts.

Mother Dairy

A leading dairy brand in India, known for its milk products and edible goods.

Holder in Due Course

A legal term referring to a person who has acquired a negotiable instrument in good faith, for value, and without notice of any defect or claim against it.