After Entering into a Contract,a Buyer Becomes Concerned That the Other

question 73

Multiple Choice

After entering into a contract,a buyer becomes concerned that the other party may not be able to perform his contract obligations.The buyer demands assurance from the other party that the contract will be performed.What is the maximum time period that the buyer would have to wait before considering the other party has repudiated the contract?

• A)90 days
• B)10 days
• C)30 days
• D)365 days

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Definitions:

Payment Schedule

A plan that outlines the dates and amounts for payments due over a period.

CRA

Can refer to the Canada Revenue Agency, the agency responsible for the administration of tax laws for the Canadian government, or to the Community Reinvestment Act, a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities.

Bargain Purchase Option

A clause in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price that is significantly lower than the expected market value.

Residual Value

The estimated value that an asset will have at the end of its useful life, often used in calculating leases and depreciation.