Lease and Hire Purchase

a.)When Cut and Chop entered into a contract to sell the business premises on 1 May

Hire purchase is when a company or person lends out goods to companies for a short period of time, with added interest. Tesco could benefit if they were the company as they would lend out equipment, machinery, property and vehicles, as they would gain interest and also regain some of their investment into the product.

iii. The three launch payments fit the before stated criteria of substantive payments. The contract signing payment and negotiation payment do fit the criteria because these payments are not proportionate to the vendor’s performance, do not relate solely to past performances, and are not “reasonable relative” to all of the deliverables and payment terms.

c. Only after conduct that shows the buyer 's willingness to become owner of the goods.

1. The customer fills in the form (with the exception of the rental amount which is

c. The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed.

The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: failure of debtors to pay when due, the effects of

g. On December 31, 2012, the company completed the work on a contract for an out-of-province company for $7,900 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction.

* If the arrangement includes a general right of return relative to the delivered item, where the delivery or

2. the majority of instalment contracts is sold with recourse to unrelated financial institutions at an agreed upon rate which is below the contractual interest rate of the instalment contract

B. When Lord pays Von for the goods C. When Von sold the goods to Lord D. When the goods are used by Lord

b. The firm is required to make a cash payment for the goods or services.

b) In obtaining the machine and building for Blast productions no cash payment has been made.

21. A business purchases a truck by signing a note payable to the seller. Such a transaction would include a:

Contracts Exam Question (with sample answers) Question 1 H. Bigbus (B hereafter) operates a construction supply business in Harrisburg. B specializes in supplying difficult-to-locate plumbing and light fixtures for contractors who do remodeling work. B sent the following letter to five contractors in the Harrisburg region: OFFER TO THE TRADE We have cornered the market for a source of brass "Orient Express" wall hanging light fixtures. We know (and we're sure that you do, too) that these fixtures are in such great demand that they are nearly impossible to obtain. If you are willing to take all your needs from us, we'll guarantee delivery at $20.00 each. I. M. Sap (S hereafter), a contractor who remodeled about twenty houses per year,