A Contract Must Be in Writing to Be Enforceable If

question 1

True/False

A contract must be in writing to be enforceable if its performance is not likely within a year of its formation, even if that performance is possible.

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Definitions:

Direct Tax

Taxes paid directly to the government by the taxpayer, such as income tax.

Indirect Tax

A tax collected by an intermediary (like a retailer) from the person who bears the ultimate economic burden of the tax (like the consumer). Examples include sales tax and VAT (Value Added Tax).

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements that may or may not align with the calendar year.

Marginal Tax Rate

The tax rate applied to the last dollar of income earned.