Which of the Following Statements Is TRUE

question 9

Multiple Choice

Which of the following statements is TRUE?

• A) A contractual obligation is executory if it has been performed.
• B) An option to terminate can only be exercised by one party if the other party has breached the contract.
• C) A true condition subsequent will prevent a contract from being created unless a certain event occurs.
• D) A contract will be discharged on the basis of substantial performance only if the recipient of the incomplete performance agrees to accept monetary damages for the shortfall.
• E) A contract will be discharged on the basis of anticipatory breach only if the innocent party chooses to relieve the party in breach of the need to perform the contract.

---

Definitions:

Trade Deficit

A situation where a country's imports exceed its exports during a specific time period, indicating a net outflow of domestic currency to foreign markets.

Imports

The goods and services purchased from other countries.

Foreign Direct Investment

An investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

U.S.

Refers to the United States of America, a country primarily located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.