If Performance of a Contract Is Not Substantial, There Is

question 66

True/False

If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in a business’s level of activity or volume of output produced, such as materials and labor.

Differential Cost

The difference in cost between two alternative decisions or scenarios.

Incremental Cost

The additional cost associated with producing one more unit of a product.

Step-Wise Cost

Costs that remain constant for a certain level of activity but jump to a higher amount once a threshold is crossed.