A Party Who Knowingly Accepts Defective Performance of a Contract

question 37

True/False

A party who knowingly accepts defective performance of a contract waives the breach.

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Definitions:

Bad Debt Expense

An expense recognized by businesses for accounts receivable that are not expected to be collected.

Credit Basis

The terms and conditions under which credit is extended by a lender to a borrower, including repayment schedules and interest rates.

Operating Expense

Expenses incurred during the normal operation of a business, excluding costs related to production or direct services.

Allowance for Doubtful Accounts

A contra-asset account that estimates the amount of receivables that may not be collectible.