Which of the Following Best Describes a Flow (Rather Than

question 164

Multiple Choice

Which of the following best describes a flow (rather than a stock) ?

• A)you own $5,000 worth of government bonds
• B)you own a $100,000 house
• C)you own a coin collection valued at $10,000
• D)you earn $500 per week
• E)you own a $45,000 automobile

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Definitions:

Parol Evidence Rule

A legal principle that prevents parties in a contract dispute from presenting evidence of prior or contemporaneous oral agreements that would contradict the written terms of the contract.

Writing Requirement

A legal principle that certain agreements or contracts must be in writing to be legally binding, especially relevant in real estate transactions and contracts that cannot be performed within one year.

Statute of Frauds

A legal principle that requires certain contracts to be in writing and signed by the parties involved to be enforceable.

Signature Requirement

A legal or regulatory necessity for signatures on documents to validate their authenticity or to indicate agreement to terms.