In a Contract for the Sale of Goods, Any Modification

question 15

True/False

In a contract for the sale of goods, any modification made by the parties to the contract must be supported by consideration to be binding.

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Definitions:

Proportional Allocation

A method of distributing costs, resources, or revenues among various accounts or projects based on a predetermined criterion, such as usage or benefit.

Residual Income

The amount of income that an individual or business has after all expenses and debts have been paid.

Return on Investment

A financial metric used to gauge the profitability of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Operating Income

EBIT, which stands for Earnings Before Interest and Taxes, indicates a firm's profit derived specifically from its primary business activities.