In Sales Contracts, the Seller Can Exercise the Right to Cure

question 36

Multiple Choice

In sales contracts, the seller can exercise the right to cure even when the original time for delivery has expired, if the:

• A) buyer purchases products regularly from the seller.
• B) seller agreed to cash on delivery (COD) selling terms.
• C) buyer accepted the commercial units in the original shipment and rejected the rest.
• D) seller had some reason to believe the buyer would accept nonconforming goods.

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Definitions:

Compounded Monthly

Interest on an investment or loan calculated and added to the principal amount on a monthly basis.

Future Payments

Payments that are scheduled to occur at future dates as part of a financial agreement or plan.

Debtor

A person or entity that owes money to another, typically as the result of a loan or other financial agreement.

Compounded Quarterly

The process by which interest is calculated and added to the principal sum of a loan or deposit four times a year.