The Grand Performance Hall Is in the Process of Remodeling

question 34

Multiple Choice

The Grand Performance Hall is in the process of remodeling and is scheduled to open for business after being closed for 50 years.As part of the remodeling,it is installing a new sound system.The sound system is to be installed by Sound Systems,Inc.on or before April 10.Opening night of the hall is May 1.The contract states that "time is of the essence" because of the opening-night deadline.Sound Systems has some financial difficulties and doesn't deliver the system until April 20.Grand Hall refuses to accept it,and Sound Systems sues.What result?

• A) Grand Hall wins; the contract date was strictly enforceable.
• B) Sound Systems wins; the contract was substantially performed.
• C) Grand Hall wins; there was commercial frustration.
• D) Sound Systems wins; there was a true impossibility.

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Definitions:

Par

The face value of a bond or other financial instrument, typically the amount at which it will be paid out upon maturity.

Yield

The earnings generated from an investment, including interest or dividends, that result from owning a specific financial instrument.

Premium Bond

A bond sold for more than its face value, typically occurring when its interest rate is higher than the current market rate.

Market Price

The ongoing rate at which a marketplace values the buying or selling of assets or services.