The Payment Terms for a Note Receivable Are Generally Longer

question 122

True/False

The payment terms for a note receivable are generally longer than that of an account receivable.

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Definitions:

Substitute Contract

A legal agreement that replaces a previous contract, often due to modified terms or conditions.

Pre-existing Duty

A legal concept where a party's promise to perform a duty that is already owed under the law or under a pre-existing contract is not considered sufficient consideration for a new contract.

Statute of Limitations

Laws setting the maximum period one can wait before filing a lawsuit, depending on the type of claim or crime.

Unilateral Contract

A contract in which only one party makes a promise or undertakes a performance, while the other party must act to trigger the obligation.