Smith Signed a Contract with a Service Provider for Security

question 80

True/False

Smith signed a contract with a service provider for security services at a rate of $250 per month for the period of January through June.He will pay the service provider the entire amount at the end of June.Smith makes adjusting entries each month.During the month of February,Smith will record total security expense of $500.

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Definitions:

Contract Formation

The process by which parties reach an agreement on the terms of a contract, creating mutual obligations enforceable by law.

Revocation

In general, the recalling or voiding of a prior action. In contract law, the withdrawal of an offer by the offeror prior to effective acceptance by the offeree.

Dispatched

The act of sending someone or something off to a destination or for a specific purpose, often related to the delivery of goods or services.

Power To Revoke

The legal authority to cancel or withdraw a decision, offer, or agreement.