Which of the Following Is True Regarding the Consequences of Frustration

question 3

Multiple Choice

Which of the following is true regarding the consequences of frustration under the Law Reform (Frustrated Contracts) Act 1943?

• A) Parties can recover money paid before the frustrating event (even where there has been performance of a part of the consideration), as well as non-monetary benefits conferred.
• B) The contract is invalidated from the start.
• C) It is necessary to show that the consideration has totally failed before parties can recover money paid before the frustrating event.
• D) The parties can only recover monetary benefits conferred to the other party prior to the frustrating event.

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Definitions:

Accounts Payable

Liabilities owed by a business to its creditors for goods and services received, but not yet paid for.

Notes Payable

A financial accounting term that represents a written promise to pay a certain amount of money, typically with interest, on or before a specified date.

Profitability Ratios

Measures of a company’s overall financial performance by evaluating its ability to generate revenues in excess of expenses.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.