Which of the Following Is True with Regard to Ending

question 167

Multiple Choice

Which of the following is true with regard to ending a contract by performance, agreement, frustration, or breach?

• A) The victim of a breach can recover damages even for the loss he could have avoided if he had tried to.
• B) A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable.
• C) An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract.
• D) If a person owing money has tendered payment in a reasonable way, at a reasonable time, and it has been refused, he is free from any further obligation to pay.
• E) If the court holds that a contract has been ended by frustration, the damages awarded by the court will be the same as if the contract was ended by a breach.

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Definitions:

Cost Accounting

A branch of accounting focused on calculating and controlling costs of producing or providing services.

Competitive Environment

The external factors and forces that affect an organization's ability to compete in its market, including competitors, market trends, and regulatory conditions.

Objectivity

The quality of being unbiased, unprejudiced, and impartial in analysis and decision-making.

Management Accounting Process

The set of practices that involves the preparation of financial reports and statements for internal use by management for decision making.