Which of the Following Contracts Would Be Void Due to Duress

question 49

Multiple Choice

Which of the following contracts would be void due to duress?

• A) Mikhail wants Ivana to sign a contract for the sale of her apartment. He tells her that if she does not sign the contract, he will harm her son.
• B) Janet owns a pair of zircon earrings. She sells them claiming they are diamonds and receives a much higher price for them.
• C) Carla unknowingly sells a painting to a collector thinking it's genuine. However, the collector finds out that it actually is an imitation.
• D) Gary has been the McGill family attorney for decades. When he needs investors for his business, he convinces Mr. McGill to invest in the new business.

Familiarize with the definitions and characteristics of annuities, perpetuities, and amortized debt.

Recognize the relationship between present value, future value, and the discount rate.

Understand the calculations related to present and future values of investments.

Grasp the concept of effective annual rate and its dependence on compounding periods.

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Definitions:

Control System

A framework or set of mechanisms used by organizations to guide, manage, and regulate behavior and performance towards desired outcomes.

Actual Performance

The real, observed output, results, or accomplishments of a process, individual, or organization, often compared against planned or expected performance.

Predetermined Level

A set benchmark or standard established in advance to guide production activities or cost estimations.

Cost Variance

The difference between the expected (budgeted) cost of an activity and its actual cost.