Which of the Following Is a Scenario Where a Universal

question 13

Multiple Choice

Which of the following is a scenario where a universal defense can be applied?

• A) A is induced to execute a commercial paper wrongly through misrepresentation.
• B) A delivers a check to B, who is a minor, and he loses it.
• C) A and B are engaged in a dispute over a contract and a third party is involved.
• D) A delivers a check to B with a condition not to deliver it to C, but B delivers it anyway.

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Definitions:

Liabilities

Liabilities represent obligations or debts that a company owes to external parties, which must be settled through the transfer of assets or services.

Assets

Economic resources owned by a business or individual, expected to bring future benefits.

Net Income

The total profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenue.

Net Loss

A situation where total expenses exceed total revenues, indicating a negative profit.