Explain the differences between and similarities of the categories used to classify contracts by their enforceability: valid, unenforceable, voidable, and void.
What will be an ideal response?
Students' responses may vary. The answer should be structured along with these definitions: A valid contract is one that meets all the legal requirements for a contract. An unenforceable contract is one that meets the basic elements required for a contract but will not be enforced due to some other legal rule. A voidable contract is one that may be canceled by one or both of the parties. The void contract lacks one or more of the basic requirements for a contract.
You might also like to view...
In a statement of cash flows using the indirect method, which of the following events would not be classified as an operating activity?
A) a gain from sale of equipment B) ?the receipt of a cash dividend C) proceeds from the issuance of bonds D) interest expense paid on a loan
Technical constraints have been carefully considered when developing a project network. Which of the following is true at this point?
A. Resources have been assigned to each activity so they are adequate to complete the project on time B. The project is ready to be implemented C. Technical dependencies between activities are known D. The project completion date can be established E. All of these are true statements once technical constraints have been established
Incremental separate costs are defined as all costs incurred between ____ and the point of sale
a. inception b. split-off point c. transfer to finished goods inventory d. point of addition of disposal costs
Describe the effects of transactions involving investments on the statement of cash flows