Jameson and French Entered into a Contract in Which Jameson

question 33

Multiple Choice

Jameson and French entered into a contract in which Jameson was required to deliver merchandise to French by January 19. On January 5, Jameson told French that he (Jameson) had no intention of delivering the merchandise required by the contract. Prior to January 19, French may successfully sue Jameson for

• A) accord and satisfaction.
• B) substantial performance.
• C) liquidated damages.
• D) anticipatory breach.

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Definitions:

Period Cost

Costs that are expensed in the period in which they are incurred and are not directly tied to the production of inventory.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time.

Product Costs

The total expenses involved in manufacturing a product, including direct labor, direct materials, and manufacturing overhead.

Revenue

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