A Buyer's Cancellation of a Contract Based on the Seller's

question 6

Multiple Choice

A buyer's cancellation of a contract based on the seller's anticipatory repudiation is effective:

• A) only if the buyer expressly notifies the seller of the cancellation.
• B) if the cancellation precedes the seller's attempt to retract her repudiation.
• C) only if bond has been obtained.
• D) All of these are correct.

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Definitions:

Cash Disbursements

The outflow of cash for expenses, investments, and other business activities as recorded in the entity's financial records.

Variable Selling

Costs that vary directly with the volume of sales, including commissions and shipping fees.

Administrative Expense

Costs related to the general operations of a business that are not directly tied to the production of goods or services.

Cash Disbursements

Payments made in cash by a business, including expenses, debt payments, and dividend distributions.