Under the Common Law, a Modification of a Preexisting Contract

question 40

True/False

Under the common law, a modification of a preexisting contract must be supported by mutual consideration; under the Code, a contract can be modified without new consideration.

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Definitions:

Target Profit

The desired profit a company aims to achieve within a specific period.

Unit Sales

The quantity of products sold by a company, not taking into account the revenue generated or discounts provided.

Break-even

The break-even point, where total costs are exactly matched by total revenues, leading to neither profits nor losses.

Monthly Dollar Sales

The total sales revenue generated within a month, expressed in dollar terms.