Which of the Following Statements Is True About the Modification

question 44

Multiple Choice

Which of the following statements is true about the modification of an existing contract under the Uniform Commercial Code?

• A) Agreements to modify contracts for the sale of goods need consideration to be binding.
• B) If the price of the goods in a modified agreement is $500 or more, the modification is enforceable.
• C) There is no duty to agree to a modification.
• D) There is no legal prohibition against agreements that result from coercion.

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Definitions:

Compounded Monthly

The process of adding interest to the initial amount of a loan or deposit on a monthly basis, causing the total amount to grow at an increasing rate.

Compounded Annually

An interest calculation method where interest is calculated once a year and added to the principal, leading to an increase in the amount of subsequent interest.

RRSP

Registered Retirement Savings Plan (RRSP) is a Canadian financial account designed for individuals to save for retirement, offering tax benefits to incentivize saving.

Compounded Quarterly

Interest on a loan or investment is calculated four times a year, with each interest payment added to the principal.