If a Party to an Existing Contract Discovers They Had

question 44

Multiple Choice

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

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

---

Definitions:

Journalizing

The process of recording financial transactions in a journal, detailing accounts affected, amounts, and dates.

Journalizing

The process of recording financial transactions in the journal in chronological order.

Transaction Data

Data generated from business transactions, such as sales or purchases, often used for analysis, tracking, and reporting.

Journal

An accounting record where all business transactions are initially recorded in chronological order.