Use This Fact Situation to Answer the Related Questions That

question 83

Multiple Choice

Use this fact situation to answer the related questions that follow it. A and B are negotiating a settlement under which A is to give B money and in return B is to give A his house and his car.The negotiations are by faxes back and forth between A and B,who agree to put the settlement in writing.A prepares the written settlement agreement,which,unfortunately,does not refer to his house,so B quickly signs it.
In this situation,if A argues that the house was part of the settlement and was left out by mistake,

• A)B need not give his house to A,because there really was no error by A at all.
• B)B need not give his house to A,because the written settlement agreement superseded the negotiations.
• C)B need not give his house to A,because it was not reasonable for A to have relied on the house as part of B's settlement obligation.
• D)B must give his house to A,because B knew of A's error and took advantage of it.
• E)B need not give his house to A,because that term is not in the written contract.

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Definitions:

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared over a period of time.

Total Output

The total quantity of goods or services produced by a firm or economy in a given period.

Economy

A system of production, distribution, and consumption of goods and services among individuals and businesses in a certain area or country.

Increasing Rate

A situation or condition where there is a rise in the percentage or level of a particular economic variable or indicator over a designated period.