Johan Is Negotiating the Possible Sale of One of His

question 49

Multiple Choice

Johan is negotiating the possible sale of one of his company's regional business operations to Bill.In response to Bill's inquiry regarding the duration remaining on the existing supply contracts,Johan provided the end dates of the contracts themselves.Johan did not advise Bill that two of the customers were on the brink of insolvency.If Bill relies on the information Johan provided,what recourse will contract law allow him?

• A) The contractual defect is so substantial that it is of no force or effect.
• B) A misrepresentation must meet the requirements imposed by legislation.
• C) An aggrieved party can choose to enforce the deal or bring it to an end.
• D) Partial provision of information allows the contract to be rescinded.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given time period.

Total Revenue

The total amount of money generated by the sale of goods or services before any expenses are subtracted.

Inelastic Portion

Part of the demand curve where consumers are less sensitive to price changes, meaning that the quantity demanded changes little with a significant price change.

Price Elasticity

The determination of demand elasticity for a product relative to changes in its price.