Contracts | Accounting homework help


Contracts, as was reviewed in the text and in class are binding agreements. One of the elements of a contract is legal consideration. In short, one consideration (thing given) is exchanged for another consideration. Many business contracts include specific milestones of affirmative performance from one or both parties (for example, a buyer agrees to pay the seller and the seller agrees to provide the buyer with goods). 

  • Can a contract require negative performance – that is, can a contract require one or both parties to specifically not perform certain acts?  Explain.
  • If so, give a few examples and comments on what might be prohibited in a sale of goods transaction? (Cite and reference)
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