Which of the Following Is $\underline{not}$ One of the Criteria That Have Been Suggested for Lease

question 9

Multiple Choice

Which of the following is $\underline{not}$ one of the criteria that have been suggested for lease capitalization?

• A)Lessee builds up a material equity in the leased property.
• B)Lessee pays costs normally incident to ownership.
• C)Lease is between related parties.
• D)Lease agreement is cancelable.

---

Definitions:

Breach of Contract

The violation of a contractual obligation without valid legal excuse, which may result in legal consequences including the right to damages or enforcement of performance.

Unidentified Principal

Refers to a scenario in agency relationships where the identity of the principal is unknown to the third party at the time of the transaction.

Contract Action

A legal proceeding initiated to enforce the terms of a contract or to resolve disputes arising from a contract.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe an agent has authority to act.