If There Is a Time Limitation or Any Other Restriction

question 9

Multiple Choice

If there is a time limitation or any other restriction in a contract, a third-party beneficiary:

• A) may ignore it.
• B) may void it.
• C) is bound thereby.
• D) must consent to be bound thereby before it is effective.

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Definitions:

Debenture

A type of unsecured debt instrument issued by a company, based on its general creditworthiness, without specific collateral backing.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Equipment

Physical assets used in the operation of a business, such as machinery, computers, and vehicles, often considered in terms of its depreciation or investment value.

Invoice Price

The price initially set by the manufacturer or provider for a product or service, usually before any discounts or increases for market forces.