Jack, Acting as an Agent for Mike, Purchases Two Tonnes

question 1

Multiple Choice

Jack, acting as an agent for Mike, purchases two tonnes of wheat on credit from Bryan. As per the agency contract, Jack is entitled to make all purchases under Mike's name. However, Mike refuses to make payment. Which of the following is legally permissible in this scenario?

• A) Jack can make part-payment and conclude the sale.
• B) Jack can refuse payment to Bryan stating an unauthorized sale.
• C) Bryan can sue both Mike and Jack for damages.
• D) Mike can sue Jack for wrongful purchase and terminate the contract.

Determine the size of equal payments required to repay a loan or fulfill an obligation under specific conditions.

Apply financial calculations to real-life scenarios, such as savings, loans, and investments, using financial functions on a calculator.

Understand the impact of time value of money on long-term savings and payment plans.

Understand the concept of compound interest and its application to finance.

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Definitions:

Accrual

The accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Onerous Contracts

Contracts in which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received under it.

Accruals

Accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash transactions occur, reflecting the economic activity more accurately.

Employee Benefits

All forms of consideration given by an entity in exchange for service rendered by employees or for the termination of employment.