Abel Entered into a Written Agreement with Burrows to Buy

question 40

Multiple Choice

Abel entered into a written agreement with Burrows to buy a horse. In the meantime, the horse died. Under the common law, this contract was discharged by

• A) performance.
• B) mutual agreement.
• C) substantial performance.
• D) impossibility.

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Identical Goods

Products that are exactly the same in every aspect, including quality, appearance, and functionality.

Good Faith

An honest intention to act without taking unfair advantage over another party, reflected in business deals and contracts.

Consequential Damages

Compensation for losses that directly and foreseeably result from the breach of a contract or other wrongful act.