Privity of Contract Is Usually Required in Order for a Party

question 23

True/False

Privity of contract is usually required in order for a party to be bound to a contract or have rights under a contract.

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Definitions:

Cash Discounts

Reductions in the price of goods or services offered to customers as an incentive for early payment.

Sales Returns

Transactions where the buyer returns previously purchased merchandise back to the seller for a refund or exchange, reducing the seller's revenue.

Gross Method

An accounting method for recording purchases at the full invoice price without deducting any cash discounts.

Recording

The act of documenting financial transactions in accounting records.