If Appropriate Assurance Is Not Given in Response to a Demand

question 23

Multiple Choice

If appropriate assurance is not given in response to a demand for assurance of performance, the demanding party may:

• A) treat the contract as repudiated.
• B) sue for libel.
• C) file for an insurance payment.
• D) not replace the repudiated contract.

---

Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage of the principal, to be paid over a specified period.

Annuity Due

A type of annuity in which payments are made at the beginning of each period, rather than at the end.

Present Value

The current worth of a future sum of money or stream of cash flows, given a particular rate of discount.

Sinking Fund

A fund established by a government or corporation for the purpose of reducing debt by repurchasing bonds or shares.