A Contract for a Sale of Land from Beachfront Properties

question 44

Multiple Choice

A contract for a sale of land from Beachfront Properties Inc. to City Development Corporation contains an erroneous legal description. The appropriate remedy for these parties is most likely

• A)damages.
• B)reformation.
• C)a quasi contract.
• D)specific performance.

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Definitions:

Strike Price

The specified price at which the holder of an option contract can buy (call option) or sell (put option) the underlying asset until the expiration date.

Conversion Ratio

A key term in finance, specifically in convertible securities, representing the number of shares an investor can convert a bond into.

Par Value

The face value of a bond or stock as stated by the issuing company, which may be different from its market value.

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.