Don,a Local Building Contractor,keeps an Extra $5000 in His Chequing

question 46

Multiple Choice

Don,a local building contractor,keeps an extra $5000 in his chequing account simply for any emergency which might arise.This is an example of the _____ motive for holding cash.

• A)precautionary
• B)availability
• C)transaction
• D)speculative
• E)daily

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Definitions:

One Year

One year denotes a period of time consisting of 12 consecutive months.

No Writing

A legal situation where an agreement or contract was verbally made without any documented evidence or formal writing.

Parol Evidence Rule

A legal principle that prevents parties to a written contract from presenting extrinsic evidence of terms or conditions that contradict or modify the written document.

Defense of Fraud

In legal contexts, the defense of fraud involves arguments and evidence to challenge the validity of a contract or transaction based on claims of deceit or misrepresentation.