Which of the Following Is True of a Draft

question 11

Multiple Choice

Which of the following is true of a draft?

• A) It is always a two-party transaction.
• B) It is an unconditional written promise to pay.
• C) It is a note created upon deposition of money.
• D) It is a written order by one party that orders a second party to pay a third party.

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Definitions:

Duty of Performance

An obligation of a party in a contract to complete the tasks, obligations, or services as agreed upon in the contract.

Uncertain Event

An event whose occurrence or outcome is not known or predictable with certainty, often associated with risk assessment.

Condition

A stipulation or requirement in a contract that must be met for the contract to be fully enforceable.

Anticipatory Repudiation

A contractual condition where one party indicates they will not fulfill their contractual duties before the time of performance is due.