An Operating Lease Is Cancelable Because

question 59

Multiple Choice

An operating lease is cancelable because:

• A)the asset is easily broken or damaged.
• B)the lessee typically is uncertain about his use needs for the asset.
• C)the lessor may need the asset for some other purpose.
• D)the lessee is not a good credit risk.

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Definitions:

Reasonable Reliance

The act of depending on the promise, statement, or action of another on the grounds that it is sensible and justifiable to do so under the circumstances.

Employment Policy Manual

A document provided by employers to employees, outlining workplace rules, policies, and expectations.

Promissory Estoppel

Promissory estoppel is a legal principle that allows a party to recover on a promise made without a formal contract, provided they have relied on that promise to their detriment.

Implied Contract

An agreement created by actions of the parties involved, not written or spoken, but inferred from their conduct.