Ozzie contracts for the sale of 500 shares of stock in Premium Quality, Inc., to Ray, with payment to go to Scholar University to pay Thalia's tuition. The contract reserves to Ozzie and Ray the right to modify its terms. Scholar's right to payment is
A) not affected by the reservation.
B) subject to any change that Ozzie and Ray make.
C) limited only if Thalia agrees to any changes.
D) terminated by the reservation.

Question

​Ozzie contracts for the sale of 500 shares of stock in Premium Quality, Inc., to Ray, with payment to go to Scholar University to pay Thalia's tuition. The contract reserves to Ozzie and Ray the right to modify its terms. Scholar's right to payment is
A) ​not affected by the reservation.
B) ​subject to any change that Ozzie and Ray make.
C) ​limited only if Thalia agrees to any changes.
D) ​terminated by the reservation.

Quizplus · Accepted Answer

Scholar's right to payment is subject to any change that Ozzie and Ray make because the contract explicitly reserves the right to modify its terms to the original parties, Ozzie and Ray.

​Ozzie Contracts for the Sale of 500 Shares of Stock

Ozzie Contracts for the Sale of 500 Shares of Stock