InterComp Normally Sells $50,000 Worth of Software to Power Source

question 11

Multiple Choice

InterComp normally sells $50,000 worth of software to Power Source, a retail elec?tronics store, each summer on terms requiring payment in sixty days. One year, InterComp wants cash, but Power Source wants the usual sixty days. To meet both needs, the parties can arrange

• A) a certificate of deposit.
• B) a bearer bond.
• C) a trade acceptance.
• D) an international letter of credit.

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Definitions:

Mutual Release

An agreement between two parties in which each side agrees to release the other from any possible claims or liabilities arising from a certain event or situation.

Canceling Order

An instruction to cancel a previously issued order before it is executed, commonly used in trading and procurement.

Express Repudiation

The clear and unequivocal refusal to perform one's obligations under a contract.

Anticipatory Breach

Occurs when one party to a contract indicates, either through their actions or words, that they will not fulfill their contractual obligations, allowing the other party to seek remedies before the breach actually occurs.