If a Contract for the Sale of Goods Does Not

question 26

Multiple Choice

If a contract for the sale of goods does not state the price to be paid,the:

• A) contract is void because it is too indefinite to be enforced.
• B) buyer is required to pay a reasonable price for the goods.
• C) buyer can pay whatever price the buyer in good faith believes is a proper price.
• D) seller can rightfully charge whatever price the seller in good faith believes is a proper price.

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Definitions:

Capital Cost

The total acquisition cost of an asset, including the purchase price and costs associated with its acquisition and preparation for use.

Quarterly Compounded Nominal Rate

A nominal interest rate compounded four times a year.

Effective Rate

The annual interest rate that accounts for compounding within the year.

Compounded Annually

The process where interest earned is added to the principal sum once a year, and future interest is earned on the new total.