When Contract Terms Prohibiting the Assignment of Rights Exist,most Courts

question 66

Multiple Choice

When contract terms prohibiting the assignment of rights exist,most courts will:

• A)strictly construe them.
• B)interpret a general term prohibiting assignments as a mere promise not to assign.
• C)award the obligor a right to damages for the breach of the terms forbidding the assignment.
• D)All of the above.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead expenses.

Beginning Inventory

The worth of merchandise on hand ready to be sold at the beginning of a financial period.

Merchandise Purchases

Transactions involving the buying of goods for resale purposes, typically in a retail or wholesale setting, which will either be sold as is or used in the production process.

Lower of Cost or Market

An accounting principle requiring inventory to be recorded at the lower of its original cost or its current market value.