In Which of the Following Situations Is Frustration Least Likely

question 4

Multiple Choice

In which of the following situations is frustration least likely to apply?

• A) Performance becomes unexpectedly burdensome or difficult.
• B) The risk of the relevant event occurring is allocated to one of the parties in the contract itself.
• C) One party foresaw the occurrence of the event at the time of contracting.
• D) Both parties foresaw the possibility of the event but failed to state what would happen if the event occurred.

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Definitions:

Profit

Profit is the financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in maintaining the activity.

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.

Competitive Price-Taker

A rephrased scenario where businesses in competitive markets accept the prevailing market price as given because they have no power to influence it.

Profit

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.