If a Party to an Existing Contract Discovers He or She

question 91

Multiple Choice

If a party to an existing contract discovers he or she had made an incorrect statement during the contract negotiations,then he or she should

• A)rescind the contract immediately.
• B)declare the contract voidable at the option of the other party.
• C)call his or her lawyer before he or she is sued for negligent misrepresentation.
• D)inform the other party of the true situation as soon as possible.
• E)offer to make allowances for any misunderstandings.

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Definitions:

Market Interest Rate

The prevailing rate at which borrowers can obtain loans and lenders can offer funds in the financial market.

Opportunity Cost

The cost of foregone alternatives, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Investment Project

A project involving the allocation of resources, such as time and money, with the expectation of generating future profits or benefits.

Investment Demand Curve

A graphical representation that shows the relationship between the rate of return on an investment and the total amount of investment undertaken.