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:

Picketing

Occurs when workers representing the union march at the entrance to the employer’s facility with signs explaining their reasons for striking.

Price Floor

A government- or authority-imposed price control or limit on how low a price can be charged for a product.

Effective Price Floor

A government-imposed price control above the equilibrium price, intended to ensure producers receive a minimum price higher than what the market would naturally dictate.

Surplus

A scenario in which the supply of a particular good or service surpasses its demand at the existing market price.