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:

Organizational Structure

the system that outlines how certain activities are directed in order to achieve the goals of an organization, including roles, rules, and responsibilities.

Decisions Made Quickly

A process where choices or judgments are reached in a short period of time, often to respond to immediate needs or opportunities.

Simple

Easily understood or done; presenting no difficulty.

Organizational Structure

The way in which a company or organization is organized, including the roles, responsibilities, and communication systems that govern how its activities are directed towards achieving its objectives.