Sable and Rex Agree While Talking on the Phone to Form

question 17

Multiple Choice

Sable and Rex agree while talking on the phone to form a partnership to deal in transfers of real property,which fall under the Statute of Frauds.Their partnership agreement is legally binding

• A)only if a copy of the agreement is filed in the appropriate state office.
• B)only if the agreement is reduced to writing.
• C)only if an information return is filed with the Internal Revenue Service.
• D)without more.

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Definitions:

Auction Without Reserve

An auction in which the item for sale will be sold regardless of the price, as there is no minimum bid or reserve price.

Open Price Term

In a contract, a provision that allows the price to be determined later based on agreed criteria or market conditions.

Finance Lease

A type of lease in which it is assumed that the lessee will use the leased asset for a significant portion of its useful life, and the lease payments cover the full cost of the asset along with providing a return to the lessor.

Secured Transaction

A financial agreement in which the borrower pledges collateral to the lender to secure repayment of a loan.