A Person, Who Is Not a Party to a Contract

question 18

Multiple Choice

A person, who is not a party to a contract but is intended by the contracting parties to benefit as a consequence of a contract, is termed a(n) :

• A) third party beneficiary.
• B) incidental beneficiary.
• C) official receiver.
• D) arbitrator.

Calculate the amount of principal and interest in repayments.

Use mathematical skills to solve complex financial problems without direct formulae.

Understand the concept of time value of money and its application in financial calculations.

Apply compound interest rate formulas to calculate future and present values of loans and investments.

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Definitions:

Cognitive Consistency

Cognitive Consistency refers to the desire of individuals to maintain harmony and consistency among their beliefs, attitudes, and behaviors to avoid dissonance.

Thoughts

Mental considerations, reflections, or meditations, often reflecting one's cognitive processes or attitudes.

Feelings

The emotional responses or states that arise from one's circumstances, moods, or relationships with others.

Automobile Purchase

The act of buying a car, which involves considering various factors such as price, brand, model, features, and personal preferences.