While Signing a Contract,one of the Parties Misinterpreted a Legal

question 4

Multiple Choice

While signing a contract,one of the parties misinterpreted a legal clause.Neither of the parties was a legal professional.In this scenario,the party that misrepresented the law ________.

• A) is actionable for fraud
• B) may rescind the contract
• C) is not actionable for fraud
• D) can void the contract

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Definitions:

Supplies Expense

The cost associated with the consumable items used in the operation of a business, such as office supplies or cleaning materials.

Adjusting Journal Entry

An entry in accounting that is made at the end of an accounting period to record any unrecognized income or expense for the period.

Income Tax Expense

The cost incurred by businesses or individuals due to earnings, represented as an expense in financial statements and affecting net income.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.