A Contract Is _____

question 20

Multiple Choice

A contract is _____.

• A)an exchange of a promise for an act
• B)is legally enforceable
• C)must have an offerer and an offeree
• D)all of the above

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Definitions:

Collection Time

The typical duration a company waits to collect payments from its clients following a sale.

Lockbox System

A service offered by banks to process payments quickly by having those payments mailed directly to a secure post-office box, from which the bank collects and deposits into the company's account.

Cheque Clearing

The process by which banks settle transactions made by cheques, transferring funds from the issuer's account to the payee's account.

Total Collection Time

The total time taken from issuing an invoice to the receipt of payment from customers.