Guido and Hal Want to Rescind Their Contract Under Which

question 20

Multiple Choice

Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the contract

• A) ​Guido must return the $100 and Hal must return the bike.
• B) ​Guido must return the $100 only.
• C) ​Hal must return the bike only.
• D) ​the parties can keep the "benefits" of their bargain.

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the principal amount.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Economic Profit

The financial gain achieved by a firm or individual after deducting both explicit (direct) and implicit (indirect, such as opportunity costs) costs from total revenues.

Investment

Committing funds to assets with the goal of earning returns over time.