What defines an irrevocable contract regarding funeral services?

An irrevocable contract regarding funeral services is characterized by its inability to be canceled once it has been established. This means that once the agreement is made, the consumer cannot simply change their mind and terminate the contract.

The stipulation of a limit, such as $5400, aligns with regulations that may govern how these contracts are structured, ensuring that they meet certain standards while also providing protection to the consumer. The reason that this specific option is the correct answer lies in the fact that it embodies both the irrevocable nature of such contracts and the financial boundaries set for them. By defining the contract with a monetary ceiling, the terms become clearer, safeguarding against potential overreach and giving assurance that the funds are set aside specifically for the intended funeral services.

In contrast, the other options present scenarios that do not accurately reflect the nature of an irrevocable contract. The ability to cancel (as described in the first option) contradicts the very definition of "irrevocable." Likewise, stating that all funds are available to the beneficiary does not take into account that the funds are typically held to cover the costs of the funeral services and may not be directly accessible. Finally, the ease of transfer without restrictions implies a level of flexibility that is not inherent in