Omar and Penn Want to Discharge Their Contract by Executing

question 21

Multiple Choice

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by

• A) ​a mutual agreement to rescind.
• B) ​an accord and satisfaction.
• C) ​a novation.
• D) ​an alteration of the original contract.

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Definitions:

Graphical Approach

A method of solving problems or illustrating concepts by using diagrams, charts, or graphs.

CVP Analysis

Cost-Volume-Profit Analysis is a method used in managerial accounting to analyze how revenues, costs, and profits change with variations in sales volume.

Net Income

The net income of a company, which is calculated by deducting all expenses, taxes, and costs from its total earnings.

Variable Costs

Expenses that change in proportion to the production volume or output level.