The Ultimate Purpose of a Contract Is the Creation of an Agreement

question 59

Multiple Choice

The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance. When courts uphold the validity of such promises, the resulting agreement is a(n) "_____ contract."

• A) absolute
• B) differentiated
• C) void
• D) relative
• E) enforceable

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company manages credit extended to its customers by calculating the number of times receivables are collected during a period.