Tippi and Alfred Entered into a Contract for the Sale

question 64

Multiple Choice

Tippi and Alfred entered into a contract for the sale of birds. Under the terms of that agreement, she was to provide him on a weekly basis with ten lovebirds for his pet store, and he was to pay her $50 on a weekly basis. The agreement also stated that the contract would be in force for one year. For six weeks, each party performed as promised. At the beginning of the seventh week, however, Tippi telephoned Alfred and said that she wanted to bring their agreement to an immediate end. Which of the following statements is TRUE?

• A) If the parties agree to immediately discharge their contract, their new agreement will be supported by consideration.
• B) The parties' contract will automatically be discharged through the process of novation if neither Tippi nor Alfred ever try to enforce it.
• C) The contract can be brought to an end through the process of release only if Tipi provides fresh consideration.
• D) The parties cannot use the process of rescission to discharge the contract because they have already performed part of the agreement.
• E) The parties can use the process of rescission to discharge the contract, but only if Alfred seals his agreement to Tippi's proposal.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.

Variability

The extent to which data points in a statistical distribution or data set differ from each other and from the overall mean of the set.

Index

A statistical measure or indicator that represents the variation or level of a specific phenomenon, often used in economics and finance.

Correlation Coefficient

A statistical measure that calculates the degree to which two variables move with each other, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).