The "Perfect Tender Rule" Provides That Only Substantial Deviations from the Promised

question 9

True/False

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

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Definitions:

Implicit Lease Rate

The interest rate embedded in a lease agreement that equates the value of lease payments to the fair value of the leased asset.

Incremental Borrowing Rate

The interest rate a lessee would have to pay if, instead of leasing, they financed the purchase of an asset with a loan over a similar term.

Implicit Rate Of Interest

The interest rate embedded in a lease agreement, used to calculate the present value of lease payments and to establish the lease classification.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return or discount rate.