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Discount Mart Inc

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Essay

Discount Mart Inc. contracts to buy ten acres from Enterprises LLC as a site for a new store. The contract calls for a "warranty deed." According to a survey that Discount Mart commissions, one corner of an adjacent, enclosed parking lot is on part of the property that the seller is attempting to convey. Can the buyer avoid the contract? If so, on what basis? If not, why not?


Definitions:

Unearned Fees

Income received for services that have not yet been performed, similar to unearned revenue but specifically related to service fees.

Fees Earned

Revenue recognized from providing services, as opposed to selling goods.

Adjusting Entry

An accounting record update that adjusts account balances at the conclusion of an accounting period.

Unearned Tuition

Income received by an educational institution for tuition that is yet to be earned by providing educational services.

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