What Are the Five Characteristics That Make an Asset Suitable

question 58

Essay

What are the five characteristics that make an asset suitable to be used as a medium of exchange?

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Definitions:

Assertion

An assertive declaration of truth or conviction.

Mutual Mistake

A legal concept where both parties involved in a contract have a misunderstanding about an essential fact of the agreement, potentially making the contract voidable.

Fair Market Value

The price at which an asset would exchange hands between a willing buyer and seller, each having reasonable knowledge of the relevant facts, and neither being under compulsion to transact.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract, allowing the other party to seek legal remedies.