​ a F Orce Majeure Clause in a Contract Is

question 7

Multiple Choice

​ A f orce majeure clause in a contract is a contract provision that excuses performance by a party when:

• A)an extraordinary event outside the party's control occurs.
• B)death or physical incapacity occurs, making it impossible to perform the services of the contract.
• C)the performance is made impossible by the wrongful act of the other party.
• D)an act that was legal at the time of the contract, is subsequently made illegal.

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Definitions:

Year-end Balance Sheet

A financial statement that lists a company's assets, liabilities, and equity at the end of its fiscal year.

Lower of Cost or Market

An accounting principle that states inventory should be recorded at the lower of its historical cost or its current market value.

Inventory Item

Goods or merchandise kept on the premises of a business or warehouse and available for sale or distribution.

Historical Cost

The original cost at which an asset is acquired and recorded in the financial statements, not adjusted for inflation or market changes.