A Contract Calls for a Farmer to Send Apples Growing

question 6

Multiple Choice

A contract calls for a farmer to send apples growing at his farm to the fruit market every Monday and he promptly sends them fresh stock of apples every Monday as per the contract.If the fruit market does not pay cash but rather sends a check the following week then:

• A)the farmer can object if he may want to rely on the late payment for canceling the contract,but can do this only after six months of the contract period.
• B)the farmer cannot object under any circumstances.
• C)the farmer must object if he may want to rely on the late payment as grounds for later canceling the contract.
• D)the farmer can object only if he has not been paid for the apples he delivered.

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Definitions:

Selling Price

The amount for which something is sold; the price that a buyer pays.

Retail Price

The price at which goods or services are sold to the end consumer, inclusive of any markup from wholesalers or distributors.

Mark-up on Cost

The percentage added to the cost of goods to cover overhead and profit; the difference between the cost of a product and its selling price.

Operating Expenses

The day-to-day expenses involved in running a business, such as rent, utilities, and payroll, crucial for maintaining operations.