Under the Majority Rule, the Test Under the One-Year Provision

question 21

True/False

Under the majority rule, the test under the one-year provision of the statute of frauds is whether the parties believe that the contract cannot be performed within one year.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders potentially entitled to dividends and voting rights.

Discount

A reduction in the price of goods or services offered by a seller, often used as a strategy to increase sales or reward customer loyalty.

Building

A fixed structure used for residential, commercial, or industrial purposes, considered a long-term physical asset in accounting.