Alice Has a Contract with a Surgeon to Have a Medical

question 22

Multiple Choice

Alice has a contract with a surgeon to have a medical procedure performed on July 17.The surgeon notifies Alice on July 5 that he is in the Bahamas and will be there until the end of August and will not be able to do the surgery.Which of the following is true at this point?

• A) There will be no breach until July 17.
• B) Alice must wait until July 17, and if the surgeon does not perform the procedure, Alice can contract with another surgeon.
• C) If Alice contracts with another surgeon prior to July 17, and this second surgeon is aware of Alice's original contract, the second surgeon has no obligation to perform.
• D) Alice is free to contract with another surgeon.
• E) Alice must give the surgeon 90 days within which to schedule the surgery after July 17.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.

Stock Issuance Costs

Expenses associated with the issuing of new shares of stock, including legal, accounting, and underwriting fees.

Additional Paid-in Capital

The amount investors pay in excess of the par value for shares, reflecting the additional investment made by shareholders over the minimum required.

Acquisition Transaction

The process wherein one company takes over another company, either by purchasing its equity or its assets, effectively making it part of the acquiring company.