A Party to a Contract Erroneously Acted on an Assumption

question 5

Multiple Choice

A party to a contract erroneously acted on an assumption involving breach of an innominate term.That party is itself now being sued for breach.What was the erroneous action taken by this party?

• A) the initiation of a claim for damages
• B) the repudiation of the contract
• C) an incorrect application of a warranty
• D) a delay of performance of obligations

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Definitions:

Contracts

Legally binding agreements between two or more parties that outline duties, rights, and obligations.

Life Insurance

A contract between an insurer and an insured individual that promises payment of a death benefit to designated beneficiaries upon the insured's death.

Contracts

Legally binding agreements between two or more parties that are enforceable by law.

Enforceable

Capable of being imposed or upheld by a court of law or other authority.