Which of the Following Statements Best Describes Reformation

question 44

Multiple Choice

Which of the following statements best describes reformation?

• A) compelling a party to perform in such a way as to meet the terms of the contract
• B) correcting the terms in an agreement so that they reflect the true understanding of the parties
• C) replacing one party of a contract with another party
• D) canceling a contract

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Definitions:

Administrative Costs

Expenses related to the general operation of a business, such as office supplies and salaries of non-sales personnel.

Labor Cost

Refers to the total expense incurred by employers for the compensation of their workforce, including wages, benefits, and taxes.

Materials Cost

The total expense to an entity for all materials used in the production of a product or service.

Break-even Chart

A graphical representation used in financial analysis to show the point at which total costs and total revenue are exactly equal; thus, there is no loss or gain.