Flora Enters into a Contract with Global Shipping, Ltd

question 13

Multiple Choice

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would​

• A) ​allow the parties to rescind the contract.
• B) ​award damages to Flora for the mistake.
• C) ​award damages to Global for the mistake.
• D) ​enforce the contract as is.

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Definitions:

Sales

The total amount of goods or services that are sold within a particular period of time.

Operating Budget

A detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period, usually a fiscal year.

Cash Budget

A detailed plan that estimates cash inflows and outflows over a certain period, helping businesses manage their cash flow and liquidity.

Sales Budget

A detailed plan outlining the expected revenues from the sale of products or services over a specific period, serving as a roadmap for the company's sales strategy and performance expectations.