A Party to a Contract Erroneously Acted on an Assumption

question 17

Multiple Choice

A party to a contract erroneously acted on an assumption involving breach of a innominate term.That party is itself now being sued for breach.Which of the following would a lawyer likely indicate was the erroneous action taken by this party?

• A) the initiation of a claim for damages
• B) the repudiation of the contract
• C) an incorrect application of a warranty
• D) a delay of performance of obligations

---

Definitions:

Direct Method

A cash flow statement reporting approach that lists major operating cash receipts and payments during a period.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflow and outflow a company receives from its ongoing operations and external investment sources.

Operating Activities

Involves the day-to-day actions that are taken for the main operations of a business, such as sales and purchase of goods or services, which are reflected in the cash flow from operating activities in the financial statements.

Comparative Balance Sheet

A financial statement that presents the balances of assets, liabilities, and stockholders' equity at two or more different points in time to analyze trends or changes.