An Accord and Satisfaction Discharges the Original Contract Upon the Formation

question 45

True/False

An accord and satisfaction discharges the original contract upon the formation of the accord.

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Definitions:

Expiration

The point in time when a financial contract (e.g., option, futures contract) reaches its end date and is either executed or becomes void.

Dividend

Shareholders receive a payment from a corporation, commonly as a share of the company's profits.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.

Put Option

A financial contract giving the option buyer the right, but not the obligation, to sell a specified quantity of an asset at a set price (the strike price) within a specified time.