Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A) The breach of a warranty can entitle the innocent party to terminate the contract if its consequences are sufficiently serious enough to merit such action.
• B) If the innocent party elects to affirm the contract after the contract breaker has breached it, he can still claim damages afterwards for any loss suffered from the breach.
• C) A contract may be partially terminated where the breach relates to only some aspects of the contract.
• D) All of the options given are correct.

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Discount

A reduction applied to the face value of a product, service, or security to encourage purchase or investment.

Net 60

A payment term indicating that payment is due 60 days after the invoice date.