accounting policy for the revenue treatment of its contracts is quite reasonable. First of all, LabCo’s business primarily involves the design and manufacture of large industrial-sized machinery and tooling that is used by its customers in manufacturing parts and components for fighter jets, transport planes, and other aerospace-related machinery and equipment which falls under the contracts covered in ASC 605-35-15-2,3. ASC 605-35-15-2 covers contracts as “binding agreements between buyers and sellers
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Case Scenario: Big Time Toymaker Big Time Toymaker and Chou did have a contract at the point when Chou accepted $25,000 in exchange for exclusive negotiation rights of the game called Strat. Since the exclusive negotiation agreement stated that no distribution agreement was in place, unless in writing, there was no official distribution agreement between the parties. Although there was no written agreement, the email sent by a BTT manager could be considered by a court to be evidence of intent
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to conventional shopping. E-contract can be defined as legally enforceable promises or set of promises that using electronic medium. An e-contract is a service contract that excludes any paperwork or black and white. E-contract is a contract between e-consumer and e-business and related business. It also shows an important relation between them. It is designed to protect e-consumer when they are having a transaction in the electronic area. An e-contract is a contract modelled, executed by a software
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Steve's report for the next program meeting should contain an analysis and evaluation of the advantages, potential disadvantages, and managerial considerations of purchasing outside stores services. Advantages of purchasing outside stores services: * A purchase price saving of approximately 6 percent can be realized on approximately 90 percent of the items purchased. Assuming that this 90 percent includes a proportionate number of high-value items, minimum purchase savings should approximate
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for costs that will continue to be incurred under a contract for its remaining term without economic benefit to the entity shall be measured at its fair value at the cease-use date.‖ Therefore, if executory costs (e.g., common area maintenance costs, real estate taxes) are required to be paid by the lessee as part of the lease contract, those costs will continue to be incurred by the lessee and should be included in any calculation of contract termination costs. The measurement of any net liability
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Technical bulletin professional information for CILA members TB 16 August 2003 The following article appeared in Herbert Smith's Insurance Update Newsletter (May 2003) and they have kindly given permission for it to be circulated to CILA members. Policy conditions: legal classification and consequences of breach On at least three occasions last year the Court of Appeal considered the issue of the interpretation and status of conditions where insurers were
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Insurance contract Student’s name School name INSURANCE CONTRACT The term Insurance can be defined as a transfer of risk whereby the insurer undertakes to compensate the insured in the occurrence of events that is harmful to health, rights or property of the insured person. An insurer is a
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For a contract to be valid it must have the following characteristics: 1. Offer and acceptance A contract is formed when an offer by one party is accepted by the other party. An offer must be distinguished from mere willingness to deal or negotiate. For example, X offers to make and sell to Y calendars featuring Australian paintings. Before any agreement is reached on size, quality, style or price, Y decides not to continue. At this stage, there is no legally binding contract between X and Y because
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binding agreements Who has the right to enforce contractual obligations? * Contractual obligations only exist between those who have agreed to undertake them. * It follows that only parties to the contract have the right to bring an action to enforce it. This is called ‘privity’ of contract. * Price v Easton (1833) 4 B & Ad 433 * Coulls v Bagot's Executor & Trustee Co Ltd (1967) 119 CLR 460 Price v Easton 1. Original debt owed by builder to Mr Price. But the
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CLOSE-OUT OF PROCUREMENT CONTRACTS 1 The Close-out of Procurement Contracts: The Steps to Successfully Close Out a Contract Including the Processes of Termination and Settlement of Seller Claims Kelley L. Clanton Northcentral University THE CLOSE-OUT OF PROCUREMENT CONTRACTS 2 The Close-out of Procurement Contracts: The Steps to Successfully Close Out a Contract Including the Processes of
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