The Frustrated Contracts Act Determines

question 56

Multiple Choice

The Frustrated Contracts Act determines:

• A) how expenses incurred prior to frustration should be allocated
• B) who is liable if there is frustration of contract
• C) when risk passes under a contract
• D) how to calculate damages in the event of frustration
• E) all of the above

---

Definitions:

Mark-Up Percentage

The percentage added to the cost price of products to determine the selling price, intended to cover overhead and profit.

Total Variable Cost

The sum of all variable costs that change in proportion with the level of output or activity.

Total Annual Fixed Costs

The sum of all consistent, non-variable expenses that a company incurs over the course of a year.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers, typically sloping downward from left to right.