LNG LLC and Mainline Corporation Enter a Contract for a Sale

question 38

Multiple Choice

LNG LLC and Mainline Corporation enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mainline to pay $50,000 to LNG's order in sixty days. Mainline signs and dates the draft. LNG can sell the draft to

• A)Mainline only.
• B)LNG's bank only.
• C)any party after the draft has been paid.
• D)any party before payment is due.

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Definitions:

General Description

A broad or overall outline of an object, situation, or set of conditions, often providing basic details without going into in-depth specifics.

Trade Custom

Established practices or patterns of behavior that are widely accepted and followed within a particular industry.

Implied Warranty

A legal assumption that a product will meet certain standards of quality and reliability without being explicitly stated.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights.