If No Time Period for Performance Is Specified in a Contract

question 20

Multiple Choice

If no time period for performance is specified in a contract:

• A) the contract is unenforceable.
• B) time shall be of the essence.
• C) a reasonable time for performance will be implied.
• D) the time for performance will be ignored by the courts.

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Definitions:

Total Revenue

The total income generated by a company from the sale of goods or services before any expenses are subtracted.

Economies of Scale

Cost advantages that enterprises obtain due to the scale of their operations, leading to a reduction in average costs per unit as output increases.

Decreasing Marginal Product

A principle where each additional unit of input results in a smaller increase in output, after a certain point, indicating declining efficiency.

Total Cost Curve

A graphical representation that illustrates how the total cost of producing a good changes in relation to the quantity produced, considering both fixed and variable costs.