A Mistake of Fact Cannot Be Unilateral

question 65

True/False

A mistake of fact cannot be unilateral.

Understand the concept and role of Allowance for Doubtful Accounts in accounting.

Recognize the practice of factoring receivables and its financial implications.

Identify different types of receivables and their accounting treatments.

Compare the direct write-off method and the allowance method for accounting for uncollectible receivables.

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Definitions:

Unforeseen Difficulties

Challenges or complications that could not have been predicted or expected, often affecting the execution of plans or projects.

Past Consideration

A concept in contract law that refers to an act or benefit given prior to the promise being made, which therefore does not constitute valid consideration for a contract.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific period.

Promissory Estoppel

A legal principle that prevents a party from backing out of a promise which led the other party to take action or abstain from it, based on the promise.