A Third-Party Beneficiary Contract May Be Amended

question 39

Multiple Choice

A third-party beneficiary contract may be amended:

• A) with the consent of the beneficiary.
• B) by operation of law.
• C) if the contract allows modifications without the beneficiary's consent.
• D) all of the above.

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Definitions:

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are therefore written off as a loss.

Adjustment

A modification made to financial records to correct or update them.

Balance Sheet Approach

A method of estimating the net worth of a company by comparing its assets against its liabilities and shareholders' equity.

Receivables

Amounts owed to a company by its customers from sales or services provided on credit.