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Mirabeau Glass & Window Ltd

Question 30

Multiple Choice

Mirabeau Glass & Window Ltd. operates in a highly competitive environment where products are custom-designed for large, well-established, construction companies who use standard contractual terms to compare bids. Which is the best of the following methods for Mirabeau to use to minimize risk of non-payment?


A) Require, in the terms of sale, that the construction company pays part of the value of the contract in advance.
B) Agree to off-set what the construction company owes for services it will provide to Mirabeau.
C) Agree that legal title to the windows or other glass products does not pass to the construction companies until Mirabeau is paid.
D) Require a third-party guarantee from a financially sound business that will pay Mirabeau if the construction company does not.
E) Take out insurance against the risk of non-payment.

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