Suppose Parties to a Contract That Is Under the UCC

question 279

Multiple Choice

Suppose parties to a contract that is under the UCC fail to specify some term. The UCC:

• A) provides appropriate remedies for the breach created by that failure
• B) has rules to fill the gap about a silent term
• C) supplies all necessary terms to complete any commercial contract
• D) requires the terms to be completed before it recognizes a valid contract
• E) provides a special master to arbitrate all open terms

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Definitions:

Accrual Basis

An accounting method where transactions are recorded when they are earned or incurred, regardless of when cash is exchanged.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid out, not when they are earned or incurred.

Time Basis

A method of compensation or work arrangement based on the amount of time spent on a job rather than the task's outcome.

Expenses Recorded

The process of documenting all costs incurred during a specific period in the financial records, which are used to assess the company's profitability.