A(n) ________ Occurs When One Party Fails to Follow the Terms

question 90

Multiple Choice

A(n) ________ occurs when one party fails to follow the terms of a contract.

• A) breach of contract
• B) discharge of obligation
• C) obligation failure of enforcement
• D) infringement of contract

---

Definitions:

Perpetuity

A financial instrument that provides endless payments of a fixed amount of money, often used to model the value of stable companies.

Semi-annually

Occurring twice a year, or every six months.

Compounded

The method of calculating interest where the accumulated interest is added back to the principal sum, so that interest in the next period is then earned on the principal plus previously accumulated interest.

Principal

The original amount of money invested or loaned, before interest.