Quasi Contracts Are Used to Provide a Remedy When the Parties

question 38

Multiple Choice

Quasi contracts are used to provide a remedy when the parties enter into a(n) :

• A) void contract.
• B) implied in fact contract.
• C) situation in which promissory estoppel applies.
• D) All of these.

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Definitions:

Sunk Cost

Costs that have already been incurred and cannot be recovered or changed.

Make or Buy

A decision-making process in which a company chooses between manufacturing a product internally or purchasing it from an external supplier.

Significant Sunk Costs

Expenses that have already been incurred and cannot be recovered or changed.

Avoidable Cost

Costs that can be eliminated if a certain decision is made, not incurred if a particular activity is avoided.