A Third Party's Right to Control the Details of Performance

question 32

True/False

A third party's right to control the details of performance of a contract indicates that the third party is an intended beneficiary.

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Definitions:

Lockbox Service

A banking service provided to companies for the reception of payment from customers, utilizing a special post office box to speed up the collection and processing of check payments.

Clearing Time

The time it takes for a payment or transaction to be processed and the funds to be cleared and settled.

Default Risk

The possibility that a borrower will be unable to make the required payments on their debt obligations.

Marketable Securities Portfolio

A collection of liquid financial instruments and securities that can be quickly converted into cash at a value close to the market rates.