For Several Months, Yolanda Has Been Picking Up Tom's Suit

question 42

Multiple Choice

For several months, Yolanda has been picking up Tom's suit at the cleaners on the first Monday of each month. Each month, Tom pays her $25 when she delivers the suit to his office. This month she picks up the suit and delivers it to Tom's office. Tom refuses to pay Yolanda the $25, stating that they did not have a contract. What type of contract did Tom and Yolanda have?

• A) An implied contract
• B) An express contract
• C) A quasi contract
• D) A bilateral contract
• E) A unilateral contract

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Definitions:

Tax Bracket

A tax bracket is a range of incomes taxed at a specific rate under a progressive tax system, where tax rates increase as income increases.

Holding-Period Return

The total return received from holding an asset or portfolio over a period, including interest, dividends, and capital gains.

Par Value Bond

A financial instrument issued with a stated face value, the amount that will be paid back to the investor at maturity, not necessarily reflecting the bond's market value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment's cost.