Which of the Following Is True with Regard to Tender

question 127

Multiple Choice

Which of the following is true with regard to tender of performance?

• A) If the seller attempts to deliver the contract goods at the time and place designated in the contract, but the buyer refuses delivery, the seller will have to make another attempt to deliver before she can sue for breach of contract.
• B) If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract.
• C) If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract.
• D) If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation.
• E) If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline.

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Definitions:

FIFO Costing

An inventory valuation method that assumes the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory.

Opening WIP Inventory

The value of unfinished goods that a company has at the beginning of an accounting period.

FIFO Method

FIFO Method (First In, First Out) is an inventory valuation method where goods first acquired are the first to be sold or removed, affecting stock and cost of goods sold.

Equivalent Units

A concept in cost accounting used to apportion costs to partially completed goods, calculated by taking the number of completed units plus the equivalent units in the process.