When a Long-Term Note Payable Has Periodic Instalment Payments on Fixed

question 37

Multiple Choice

When a long-term note payable has periodic instalment payments on fixed dates, it means that

• A)the principal can be paid down at any time.
• B)the periodic payment decreases over time.
• C)the payment consists of interest on the unpaid balance of the loan at the beginning of the period.
• D)the payment does not include any portion of the loan principal..

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Definitions:

Fair Dealing

A legal doctrine that permits limited use of copyrighted material without permission for purposes such as criticism, news reporting, teaching, and research.

Course of Performance

An interpretation principle in contract law considering the conduct between parties in the execution of their duties under the contract.

Course of Dealing

A legal term referring to the previous conduct between parties in a contract that establishes a common basis for their understanding.

Perfect Tender Rule

A legal principle stating that a seller must deliver goods in accordance with the contract terms in every detail for the buyer to accept them.