A Party Who in Good Faith Performs Substantially All of the Terms

question 36

Multiple Choice

A party who in good faith performs substantially all of the terms of a contract can usually enforce the contract against the other party under the doctrine of

• A) insubstantial performance.
• B) inadequate performance.
• C) substantial performance.
• D) fulfilled duty.

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Definitions:

Variable Cost

Variable cost is the cost that changes in direct proportion to the volume of output or activity in production, services, or other cost-incurred activities.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a business.

Contribution Margin

The amount by which the unit selling price exceeds the unit variable cost.