Which of the Following Countertrade Definitions Is False

question 62

Multiple Choice

Which of the following countertrade definitions is false?

• A) Rescindable: A clause in the countertrade agreement that enables either party to cancel the contract without notice
• B) Barter: Goods are exchanged for other goods with no money involved
• C) Offset: The value of the sale is offset by purchases of items produced in the buying country
• D) Counterpurchase: Unrelated goods are exchanged
• E) Buy-Back/Compensation: Agreement by the seller of turnkey plants, machinery, or other capital equipment to accept as partial or full payment products produced in the plants and/ or on the capital equipment

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Definitions:

Cover

A legal remedy in contract law where the aggrieved party purchases goods or services, similar to those agreed upon, from a different source due to the original party's failure to comply.

Incidental Damages

Expenses or losses that occur as a direct result of a breach of contract, distinct from direct damages.

Consequential Damages

A type of damages that arise not directly from a wrongful act but from the results of the act, which may not have been foreseeable.

Market Price

The current price at which an asset or service can be bought or sold in the open market.