A and B Enter into a Contract on January 1

question 3

Multiple Choice

A and B enter into a contract on January 1 of this year. A 's friend C tells A , "The law generally restricts the time within which an action can be brought by either party to a contract." C 's statement is:

• A) false.
• B) true because of statutes of limitations.
• C) true because of the law of repudiation.
• D) true because of covenants not to sue.

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Semi-Annually

Occurring or calculated over half a year; typically refers to interest computed twice a year.

Trust Fund

A legal entity established to hold assets on behalf of a person or group, often used for estate planning or to manage money for beneficiaries.

Present Value

A payment’s economically equivalent amount at a prior date, allowing for the time value of money.