Connie Enters into an Agreement with Razmin, a Local Artist

question 33

Multiple Choice

Connie enters into an agreement with Razmin, a local artist, to showcase a particular one of her sculptures at a prestigious art show. The day before the show, the gallery where the sculpture was being stored burns to the ground. Which of the following represents the most likely outcome?

• A) The contract has been discharged through frustration.
• B) Razmin has breached the contract by failing to deliver the sculpture.
• C) Razmin can simply provide a different sculpture to satisfy the contract.
• D) Connie will still need to pay Razmin the same price agreed to in the contract because the fire was not Razmin's fault.
• E) The contract is void.

Understand and apply the principles of adjusting entries in accounting.

Calculate expenses and revenues accurately based on provided data.

Prepare adjusting journal entries for various accounting scenarios.

Recognize the importance of adhering to the accrual basis of accounting.

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Definitions:

Negligence Per Se

A legal doctrine where an action is considered negligent because it violates a statute or regulation designed to protect the public.

Strict Liability

A legal principle that holds a party responsible for damages or losses, regardless of fault or intent.

Unexcused Violation

A breach of rules or laws where the offender has no justifiable reason or excuse for their actions.

Reasonable Person Standard

A legal standard used to determine if an individual's actions can be considered as those of a hypothetical reasonable person under similar circumstances.