Question
The ------ risk arises from non-performance of the
trading partnersSolution
Counterparty risk is a variant of credit risk. The counterparty risk arises from nonperformance of the trading partners. The non-performance may arise from counterparty’s refusal/inability to perform due to adverse price movements or from external constraints that were not anticipated by the principal. The counterparty risk is generally viewed as a transient financial risk associated with trading rather than standard credit risk.
What will be the P/V ratio for the firm with the following sales and profit during last two years:
ABC Pvt. Ltd. entered into a contract with Mr. Rao for supplying machinery worth ₹25 lakhs. After execution of the contract, Mr. Rao became insolvent ...
As per the Companies Act, 2013 a Company means_____________
Mr. Sharma, a sole proprietor, entered into an oral agreement with a vendor for purchase of office furniture worth ₹2 lakhs, with delivery to be made ...
A Red Herring Prospectus does not the include information related to __________
Company A promises to sell land to Company B but does not sign a written agreement. B makes payment and takes possession. Is this enforceable?
A buyer and seller entered into a CIF (Cost, Insurance, Freight) contract. The seller shipped the goods and handed over the bill of lading and insurance...
Under the Indian Contract Act, a collateral contract that involves an illegal object but is signed voluntarily by both parties is later disputed.
A contract contains an arbitration clause. A dispute arises but one party sues in civil court. What should the court do?
A Private Company may not issue securities
