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Assignors Who Are Paid for Making an Assignment Are Potentially

question 19

Essay

Assignors who are paid for making an assignment are potentially liable to assignees for certain implied guarantees. These guarantees are imposed by law unless the assignment agreement clearly indicates to the contrary. What are these implied guarantees?

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Definitions:

Merchandising Business

A type of business that purchases goods and resells them to consumers without changing their form, primarily making profit through the retail or wholesale of products.

Service Business

A business that provides intangible products or services to customers rather than physical goods.

Closing Entries

The entries that transfer the balances of the revenue, expense, and drawing accounts to the owner’s capital account.

Ratio of Sales

A financial metric used to analyze a company's performance, efficiency, or market position, calculated by comparing sales figures to various other components.

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