Darien, a Minor, Wants to Disaffirm a Contract That He

question 36

Multiple Choice

Darien, a minor, wants to disaffirm a contract that he entered into with Echo, a cell service company. The law in Darien's state, as in all states, permits minors to disaffirm

• A) fully executed contracts only.
• B) executory contracts only.
• C) executory and fully executed contracts.
• D) executory contracts only except under certain circumstances.

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Definitions:

Canadian GAAP

Canadian Generally Accepted Accounting Principles, a set of accounting standards used in Canada to ensure financial statements are consistent and transparent.

Primary Beneficiary

The entity that has the majority of risks and rewards from a variable interest entity, leading to the requirement of consolidating the entity's financial statements.

Amortization

The gradual reduction of a debt over a period of time through regular payments or the systematic allocation of intangible asset costs over its useful life.

Unrealized Gain

A profit that results from holding onto an asset rather than selling it, not reflected in cash flow or income until the asset is sold.