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The Children's Foundation enters into a contract with The Lively Group. The contract obligates The Children's Foundation to deliver a specified amount of cash to
The Children\'s Foundation enters into a contract with The Lively Group. The contract obligates The Children\'s Foundation to deliver a specified amount of cash to The Lively Group if a specified event that is beyond the control of either entity occurs. The contract gives The Lively Group the right to receive the cash from The Children\'s Foundation if said event occurs. What type of contract is this?
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The contract described in the question is known as a derivative contract specifically a form of cont...
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
