Is It Possible for a Party That Has Waived Rights

question 44

Multiple Choice

Is it possible for a party that has waived rights to a portion of the contract not yet performed to retract the waiver? How?

• A) Yes. The party will be able to immediately assert the late payments as grounds for later canceling the contract.
• B) Yes. The party can give reasonable notice to the other party that strict performance will be required.
• C) No. Once a party has waived rights to a portion of the contract, it will not be able to assert this as grounds for later canceling the contract.
• D) Yes. The contract is assumed to be made in good faith.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the company's books for the next period.

Net Sales

The sum a company receives from its sales, after accounting for returns, compensations for damaged or missing items, and discount deductions.

Gross Profit

The difference between the revenue from sales and the cost of goods sold, before deducting overheads, interest, and taxes.

Cost of Goods Sold

Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold by a company, including materials and labor.