Because the Consideration on Option Contracts Is Nominal, Its Recital

question 30

True/False

Because the consideration on option contracts is nominal, its recital in the written instrument is usually a mere formality, and it is frequently paid.

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Definitions:

Disbursements

Payments made by a business or organization, often involving the distribution of funds, such as payroll or expense reimbursements.

Certificate

A document officially recognizing a certain achievement, qualification, or standard, often issued after the completion of educational courses or training.

Guaranteed Payment

A payment type in partnerships where a partner is assured a certain amount regardless of the firm's profitability.

Accounting Process

The systematic series of steps followed in the accounting profession to track and record financial transactions and prepare financial statements.