When the Original Parties to a Contract Agree That Its

question 43

True/False

When the original parties to a contract agree that its performance should directly benefit a third party, that party can sue the promisor directly for breach.

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Definitions:

Interest Rates

The amount charged by lenders as a percentage of the principal, or the amount earned on an investment over a specific period.

Bond Prices

The market price at which a bond is currently trading, influenced by factors such as interest rates, credit quality, and maturity date.

Call Protected

Bond during the period in which it cannot be redeemed by the issuer.

Call Provision

A feature on a bond allowing the issuer to redeem the bond before its maturity date.