Unless One of the Parties Contractually Assumes the Risk, the __________

question 60

Multiple Choice

Unless one of the parties contractually assumes the risk, the __________ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible.

• A) bankruptcy law
• B) frustration of purpose doctrine
• C) perfect tender rule
• D) impossibility of performance doctrine

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Definitions:

Direct Materials

Materials that are traceable to the production of specific goods or services and included in the cost of those goods or services.

Direct Labour

is the cost associated with workers who are directly involved in the production of goods or services, such as wages for assembly line workers.

Prime Cost

The sum of direct materials and direct labor costs that are directly attributable to the production of a product.

Product Cost

The total expenditure incurred to produce a product, including direct materials, direct labor, and overhead.