Joe and Lucas Enter into a Contractual Agreement in Which

question 90

Multiple Choice

Joe and Lucas enter into a contractual agreement in which Lucas promises to deliver a unique antique artifact to Joe in the next ten days, but the artifact is stolen before Lucas could fulfill his promise. Which of the following statements is true about this scenario?

• A) Lucas must pay compensatory damages to Joe.
• B) Lucas must pay punitive damages to Joe.
• C) The contract is discharged by impossibility of performance.
• D) The contract can be terminated only if both parties agree.

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Definitions:

Retailers

Businesses that sell goods and services directly to consumers.

Freight Costs

Expenses associated with transporting goods from one place to another, which can include costs for shipping, trucking, or rail transport services.

Operating Expense

Expenses incurred during the normal operations of a business, such as salaries, rent, and utilities, excluding cost of goods sold.

Outgoing Merchandise

Outgoing merchandise refers to inventory that has been sold and is in the process of being shipped to the customer.