When One Party to a Contract Makes a Promise Without

question 80

Multiple Choice

When one party to a contract makes a promise without first receiving any promise of performance from the other, it is called

• A) a bilateral contract.
• B) an implied contract.
• C) a unilateral contract.
• D) an executory contract.

Distinguish between different scenarios that lead to the discharge of contracts, including frustration and performance.

Analyze the remedies available for breach of contract, including specific performance and damages.

Understand the use and impact of fundamental breach concept on contract enforcement.

Recognize the conditions under which a contract could be ended by performance, agreement, or breach.

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Definitions:

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as rent, salaries of managerial staff, and property taxes.

Dropping Product

The decision made by a company to discontinue producing and selling a specific product due to factors like poor sales, strategic realignment, or cost inefficiency.

Financial Advantage

Refers to the benefits gained in financial terms, often seen as an edge over competitors or a favorable position in the market.

Special Order

A one-time customer order often involving a large quantity and possibly requiring adjustments to standard pricing or production processes.