Which of the Following Is True

question 11

Multiple Choice

Which of the following is true?

• A) A puttable bond allows the lender to ask for the principal to be repaid early
• B) A puttable bond allows the borrower to repay the principal early
• C) A puttable bond is a bond with an embedded stock option
• D) None of the above

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Definitions:

Statute of Frauds

The Statute of Frauds is a legal principle requiring certain types of contracts to be in writing and signed to be enforceable.

Partial-Performance Exception

A legal doctrine allowing enforcement of an oral contract, contrary to the Statute of Frauds, based on partial completion of agreed terms.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable.

Merger Clause

A contract provision that states the written contract represents the complete and final agreement between the parties, superseding all prior negotiations.