Keith Enters into a Written Contract to Purchase Drilling Equipment

question 37

Multiple Choice

Keith enters into a written contract to purchase drilling equipment from Justin.Subsequently, Justin requests that the price and terms of delivery be changed, and Keith agrees to Justin's request.A new contract is drawn up and signed by the parties.The original contract between Keith and Justin has been:

• A)breached.
• B)novated.
• C)frustrated.
• D)voided.

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Definitions:

Assets

Assets are economic resources controlled or owned by a business, intended to provide future benefits, such as cash, inventory, property, and equipment.

Liabilities

Financial obligations or debts that a company owes to others, which must be paid in the future.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity spread among shareholders.

Assets

Assets are possessions or property that a company owns or controls with the anticipation of receiving future economic gains.