The Basic Elements of a Contract Are: Offer, Acceptance, Fair

question 182

True/False

The basic elements of a contract are: offer, acceptance, fair value, lawful subject matter, and genuine consent.

---

Definitions:

Futures Price

The agreed-upon price for the future sale or purchase of an asset in a futures contract, determined in the futures market.

Counterparty Risk

The risk that the counterparty to a transaction will not be able to make required payments when due.

Derivatives Contract

A financial agreement between parties whose value is based on, or derived from, an underlying financial asset, rate, or index.

Bond Coupon

A bond coupon is the annual interest rate paid on a bond's face value by the bond's issuer.