In a Bilateral Contract, Each Party Will Be a Promisor

question 4

Multiple Choice

In a bilateral contract, each party will be a promisor and, therefore, each party will:

• A) be an obligor.
• B) be able to avoid the contract.
• C) not be in privity of contract.
• D) be an agent for the other side.

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Definitions:

Cash Flow

The net amount of cash being transferred into and out of a business, project, or financial product.

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to invest their money.

Zero-Coupon Bond

A debt security that is issued at a discount and repaid at face value but does not pay interest during its life.

Investment

The allocation of resources (such as time, money, or effort) in the expectation of generating an income or profit.