An Anticipatory Breach Occurs When a Party to a Contract

question 21

True/False

An anticipatory breach occurs when a party to a contract expresses or clearly implies an intention not to perform to contract, even before being required to act.

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Definitions:

Liquidity Risk

Refers to the uncertainty of a company's ability to meet its short-term financial commitments due to an inability to convert assets to cash quickly without significant loss.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Maturity Risk

The risk that arises from the uncertain future value of investments that have a fixed earnings rate and a fixed maturity date.

Inflation Adjustment

A modification made to financial statements or figures to account for the effects of inflation.