A 'Void Charge' Is a Charge Granted by the Company

question 54

Multiple Choice

A 'void charge' is a charge granted by the company that is:

• A)not enforceable against a liquidator.
• B)voidable.
• C)reversible.
• D)uncommercial or unfair.

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Definitions:

Unenforceable

Describing a contract or agreement that cannot be legally enforced or compelled in a court of law.

Article 2A

A provision within the Uniform Commercial Code that governs the leasing of personal property in the United States.

Leases

Contracts in which one party (the landlord) grants another party (the tenant) the right to use real estate for a specified period in exchange for payment.

UCC

Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.