Kate and Ben Entered into a Contract

question 39

Multiple Choice

Kate and Ben entered into a contract. She promised to transfer 1000 shares in XYZ Corp to him and he promised to personally draft architectural plans to certain specifications for her. Kate transferred the shares to Ben as promised, but he later discovered that he simply lacked the ability to uphold his end of the bargain. Which of the following statements is TRUE?

• A) If Kate promises to release Ben from his obligation to perform the original contract, that promise can be enforced against her through the process of accord and satisfaction if Ben gives some form of fresh consideration, such as a promise to design a web site, instead of draft architectural plans.
• B) Rescission provides the simplest way in which the parties can bring their contract to an end.
• C) Since neither party promised to pay money, the original contract is unenforceable because it is not supported by legal tender.
• D) The contract would be unenforceable under the statute of limitations if the parties had originally agreed that Ben would have more than six years to complete the architectural plans.
• E) A seal is necessary for the purposes of an accord and satisfaction.

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Definitions:

Inseparability

A characteristic of services indicating that they are produced and consumed at the same time, making the separation of production and consumption impossible.

Innovation

The act of introducing something new or significantly improved, such as a product, service, process, or method, enhancing its value or functionality.

Car Wash

A service establishment dedicated to cleaning the exterior and, often, the interior of motor vehicles through manual or automated processes.

Service

Activities or benefits provided by a company to its customers, aiming to satisfy their needs and create value.