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Forward Contracts Benefit Only the Customer Due to a Reduction

question 23

True/False

Forward contracts benefit only the customer due to a reduction in uncertainty.


Definitions:

Legally Valid

Having a status that is recognized and enforceable by law or within the legal system.

Satisfactory Performance

In contract law, the situation that exists when either personal taste or objective standards determine the contracting parties have performed their contractual duties according to the agreement.

Personal Tastes

Individual preferences or likes, particularly relating to aesthetic or consumption choices.

Contracting Parties

The entities or individuals who enter into a contract or legal agreement with each other.

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