Fred Contracts to Sell a Certain Tract of Land to Mary

question 64

Multiple Choice

Fred contracts to sell a certain tract of land to Mary for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price.In this case, the:

• A)payment of the $20,000 and the delivery of the deed are independent of each other.
• B)delivery of the deed is a condition subsequent to the payment of the $20,000.
• C)payment of the $20,000 and the delivery of the deed are mutually dependent and, in the absence of an agreement to the contrary, are concurrent conditions.
• D)payment of the $20,000 is a condition precedent to the delivery of the deed.

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Definitions:

Permanent Accounts

Accounts that carry their ending balances over to the next accounting period, such as assets, liabilities, and equity accounts.

Service Companies

Businesses that provide intangible products or services to consumers or other businesses.

Vendors Section

A segment within a system or documentation focusing on the details and management of suppliers.

Purchase Orders

Official documents issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.