Under the Restatement, If the Parties to a Contract Attach

question 42

Multiple Choice

Under the Restatement, if the parties to a contract attach materially different meanings to their manifestations and neither party knows or has reason to know the meaning attached by the other:

• A) and neither party is to blame, there is no contract at all.
• B) and both parties are to blame, there is no contract at all.
• C) and one party is to blame, that party will be held responsible, but the contract is not void.
• D) All of these.

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Definitions:

Cost Of Goods Sold

The cost of merchandise sold recognized as an expense; the cost of finished goods available for sale minus the ending finished goods inventory.

Inventory

Inventory consists of the goods and materials a business holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

Conversion Costs

The sum of direct labor costs and manufacturing overhead costs, representing the costs to convert raw materials into finished goods.

Planned Production

The forecasted or scheduled production activities based on demand, inventory levels, and capacity planning to meet business objectives.