If the agreement is wholly unperformed, does each party have the enforceable right to terminate the contract without compensating the other party?

If there has been no transfer of goods or services (i.e., the contract is wholly unperformed), and either party to an agreement can cancel without paying consideration to the other party, then the contract does not meet the requirements to be accounted for under ASC 606. This situation differs from one where only one party can terminate a wholly unperformed contract without penalty.

ASC 606-10-25-4

When-is-the-contract-enforceable-by-either-party
When-is-the-contract-enforceable-by-either-party

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