Samuel Entered into a Contract with AE Lukey Inc

question 36

Multiple Choice

Samuel entered into a contract with AE Lukey Inc. That contract required both parties to perform services. It is now six months later. The contract is executed on one side and executory on the other. Which of the following statements may be TRUE?

• A) One party is entitled to discharge the contract.
• B) If the parties wish to modify the terms of their contract, they may effectively do so by using the process of accord and satisfaction, but not the process of rescission.
• C) One party has signed the contractual documents, but the other party has not done so.
• D) One party must be entitled to receive damages.
• E) If the parties wish to modify the terms of their contract, they may effectively do so by using the processes of variation or novation.

---

Definitions:

Repaid

The action of paying back money that has been borrowed, often including an interest component.

Liability Coverage

Insurance that provides protection against claims resulting from injuries and damage to people and/or property.

Negligently

Acting in a careless or thoughtless manner, often resulting in harm or damage to others.

Indemnity

A security or protection against a financial liability or loss.