Pledging Is the Process of Putting Up Accounts Receivable as Collateral

question 19

True/False

Pledging is the process of putting up accounts receivable as collateral to obtain cash.

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Definitions:

Mistake of Law

An error made by a person about the legal implications of their actions or the legal requirements of a situation.

Rectification

The legal process of correcting a mistake in a contract or legal document so that it accurately reflects the intentions of the parties involved.

Person's Judgment

The capacity or ability of an individual to make considered decisions or come to sensible conclusions.

Bound in Contract

A legal state or condition wherein parties are legally obligated to fulfill the terms and conditions stipulated in a contract.