Kieran Threatens to Burn Down Scott's House Unless Scott Agrees

question 20

Multiple Choice

Kieran threatens to burn down Scott's house unless Scott agrees to sell his vintage Ford Cortina to Kieran for $10 000.Scott agrees, but then sells the car to Jermaine for $50 000.What can Kieran do?

• A)Nothing.The agreement between Kieran and Scott is unenforceable due to duress.
• B)Nothing.The agreement between Kieran and Scott is unenforceable due to undue influence.
• C)Sue Scott for breach of contract.
• D)Sue Jermaine for breach of contract.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's wear and tear or obsolescence.

Depreciation Produces

An accounting process that allocates the cost of a tangible asset over its useful life, thus producing a systematic reduction in value to reflect wear and tear or obsolescence.

Decreasing Expense

Expenses that diminish over time, typically due to cost-cutting measures, operational efficiencies, or depreciation methods.

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they helped to generate, ensuring financial statements accurately reflect business activities.