An accounts receivable is often described as a sale "on account."

At the time the policy was applied for, to the best of her knowledge Mary answered all of the questions on her individual health insurance application truthfully. Two and a half years later she is diagnosed with cancer. Is her insurer obligated to cover her expenses?

A) Yes, as long as Mary did not make any fraudulent misstatements and this condition was not excluded from coverage. B) No, because she most likely had the cancer when she completed the application, even if she didn't know it at the time. C) Yes, if she can prove she developed the cancer after she signed the application. D) No, because she must have known there was something wrong with her health when she signed the application.

A broker signs a listing agreement with a seller. The agreement contains the following clause: "If the property has not been sold after three months from the date of this signing, this agreement will automatically continue for additional three-month periods thereafter until the property is sold." Based on these facts, the agreement

A) is legal under Texas law because the list periods are for fewer than six months each. B) provides grounds for loss of the broker's license. C) automatically receives a statutory six month listing period to this open listing in Texas. D) is legal under Texas law because it contains a reference to a specific time limit.