INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 55

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-If the proceeds from the sale of your repossessed collateral are insufficient to pay the balance due on your loan,the lender usually [can | cannot] collect the deficiency from you.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Breach of Contract

A situation where one or more parties involved in a contract fail to fulfil their legal obligations as outlined in that contract.

Writing Requirement

A legal stipulation that certain kinds of contracts must be in writing to be enforceable.

Purchase Price

The amount of money that is required to buy something.

Incorporation

The process of legally declaring a corporate entity to be separate from its owners, thereby providing limited liability and other benefits.