Which of the Following Is True of Consideration for Modifying

question 14

Multiple Choice

Which of the following is true of consideration for modifying a sales or lease contract under the Uniform Commercial Code?

• A) An agreement modifying a contract needs no consideration to be binding.
• B) Modifying a contract requires consideration from the offeree's side.
• C) An offeror who modifies a contract must do so by providing reasonable consideration.
• D) The party providing the consideration must complete it within three months of acceptance.

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Definitions:

Non-Current Liability

Long-term financial obligations listed on a company's balance sheet, not due within one year.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed.

Mortgages Payable

Long-term liabilities representing money a company owes on property mortgages that are due beyond the next year.

Periodic Instalment

Periodic installment refers to a regular, scheduled payment made over time towards settling a debt, which may include portions of both principal and interest.