Logan Finds $10 in His Jacket Pocket and Deposits It

question 159

Multiple Choice

Logan finds $10 in his jacket pocket and deposits it into a bank. As a result of this single transaction, M1 has

• A) increased by $10.
• B) increased by more than $10.
• C) increased by less than $10.
• D) not changed.

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Definitions:

Third-Party Beneficiary

An individual or entity that benefits from the terms of a contract, despite not being one of the principal parties involved in the agreement.

Incidental Beneficiary

A third party who unintentionally benefits from a contract made between two other parties, without having any enforceable rights under that contract.

Novation

A legal process where an old debt, obligation, or contract is replaced by a new one, effectively extinguishing the original agreement and substituting it with a new party or terms.

Obligor

An Obligor is the party in a contractual agreement who is bound to provide a specified performance to another party, the obligee.