Which of the Following Is True of Open-Price-Term Contracts

question 39

Multiple Choice

Which of the following is true of open-price-term contracts?

• A) The contract is void due to the failure to specify a required term of the contract.
• B) The price becomes the reasonable price at the time the contract was entered into.
• C) The price becomes the reasonable price at the time the goods are delivered.
• D) The price is determined by the court's applying a reasonable price at whatever time the court deems appropriate to fairness.

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Definitions:

AASB 141

AASB 141 refers to the Australian Accounting Standards Board's standard on Agriculture, outlining how to account for agricultural activities in financial statements.

IAS 41

An International Accounting Standard that deals with agriculture, guiding the accounting for agricultural activity.

Agricultural Activity

Operations involved in the cultivation of land, and breeding of animals and plants to provide food, wool, and other products.

Biological Transformation

refers to the process through which living organisms undergo changes in their physical or chemical structure, such as growth, reproduction, or decay, often used in the context of agriculture or environmental science.