Which of the Following Is True Regarding the Right of a Lessor

question 22

Multiple Choice

Which of the following is true regarding the right of a lessor to seek incidental damages in the event of a breach by a lessee of goods?

• A) A lessor may seek incidental damages only if the lessee agreed in writing to pay them.
• B) A lessor may seek incidental damages only if the lessee agreed orally or in writing to pay them.
• C) A lessor may seek incidental damages only if the damages are in an amount over $500.
• D) A lessor may seek incidental damages only if the damages are in an amount over $1,000.
• E) A lessor may seek incidental damages.

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Definitions:

Duration

Duration measures a bond's sensitivity to interest rate changes, representing the weighted average time until a bond's cash flows are paid to the investor.

Annual Pay

The total monetary compensation an employee receives from their employer in a one-year period, including all forms of salary, bonuses, and other financial benefits.

Asset Portfolios

Collections of various types of investments held by individuals or institutions to diversify risk and achieve financial goals.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, expressed in years.