Privity of Contract Is a Principle That Holds That a Contract

question 72

True/False

Privity of contract is a principle that holds that a contract can affect only the immediate parties to it.

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Definitions:

Saving Account

A savings account in a banking institution that guarantees the safety of the deposited money while offering a low interest rate.

Annual Interest Rate

The percentage of interest that will be charged or earned on an amount of money over the span of a year.

Deposit

Money placed into a financial institution for safekeeping, which can also earn interest depending on the type of account.

Semiannually Compounded Rate

An interest rate that is compounded twice a year, affecting the total amount of interest earned or paid.