The Words "On Account" or the Presence of Credit Terms

question 31

True/False

The words "on account" or the presence of credit terms indicates that purchase or sale was made for cash.

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Definitions:

UCC Section 2-301

A provision under the Uniform Commercial Code that states the obligation of a seller is to transfer and deliver goods and the buyer's obligation is to accept and pay for them in accordance with the contract.

Basic Duty

A fundamental obligation or responsibility required by one's position, job, or legal standing.

Consolidated Electric

A hypothetical term possibly implying an amalgamation of multiple electric companies or utilities to form a single entity. NO.

Commercial Impracticability

A principle that excuses a party from performing their contractual obligation due to the occurrence of events that fundamentally transforms the nature of the obligations which the parties could not have anticipated.