What is meant by a contract in perpetuity?
A) The rate of interest gradually decreases until payments can be written off.
B) The contract lasts for the lifetime of the property or equipment.
C) It is a contract that runs indefinitely, with no end to the series of payments.
D) It is a contract on which interest payments are reviewed at annual intervals.

Question

Quizplus · Accepted Answer

A contract in perpetuity, also known as a perpetual contract, is a contract that has no set end date and continues indefinitely, meaning that the series of payments will never end.

What Is Meant by a Contract in Perpetuity