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List Four Factors That Preclude the Seller-Lessee from Recognizing a Sale

question 21

Essay

List four factors that preclude the seller-lessee from recognizing a sale on a sale and leaseback transaction.


Definitions:

Breach Of Contract

Failure to live up to the terms of a contract.

Condition

A stipulation in a contract that must be met for the contract to be legally binding, or an event whose occurrence or non-occurrence affects the validity of the contract.

Warranty

A guarantee, provided by a seller or manufacturer, assuring the quality, performance, or lifespan of a product, often implying repair or replacement if specifications are not met.

Tender Of Performance

An unsuccessful (because it is rejected or prevented by the other party) attempt by one of the parties to a contract to perform its obligations under the contract.

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