The Part Performance Exception for Contracts Involving the Sale of an Interest

question 23

Multiple Choice

The part performance exception for contracts involving the sale of an interest in land provides that:

• A)The parol evidence rule does not apply.
• B)The contract will be enforced despite the fact that it is not in writing.
• C)Where multiple parties share the performance obligations,the contract need not be in writing.
• D)Once a contract has been partially performed,it must be put in writing if that has not already happened.
• E)Contracts cannot be partly performed until they are put in writing.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the total number of shares owned by shareholders.

Par Value

Refers to the nominal or face value of a bond, stock, or coupon as stated by the issuer.

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments due to changes in accounting policies, applied retrospectively.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to its net profit or loss.