Beryl Enters into a Contract with Clay for a Guided

question 14

Multiple Choice

Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl

• A)could exert duress to obtain a new guide.
• B)can rescind the deal based on fraudulent misrepresentation.
• C)might recover damages for the mistake.
• D)must comply with the contract because the representation is an opinion.

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Definitions:

Activity Variance

The difference between the planned activity level and the actual activity level.

Planning Budget

A financial forecast or projection, detailing expected revenues and expenses within a future period.

Net Operating Income

The profit a company generates from its regular business operations, excluding expenses and revenues from non-operating activities.

Client-visits

The act of meeting with clients or potential clients, often for the purposes of discussing business opportunities, providing services, or strengthening relationships.