Bart Was Supposed to Deliver 100,000 Firecrackers to Lisa by June

question 404

Multiple Choice

Bart was supposed to deliver 100,000 firecrackers to Lisa by June 1, but his factory explodes in April so he suspends operations. The contract:

• A) has suffered a novation
• B) has incurred a rescission
• C) has incurred the failure of a condition precedent
• D) has been terminated by impossibility
• E) none of the other choices

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Definitions:

Par Common Stock

The face value of a share of common stock, as stated in the corporate charter, which is the minimum amount that must be paid for a share at issuance.

Paid-In Capital

The amount of capital provided by shareholders to a company in exchange for shares of stock, representing the funds contributed by investors during the issuance of shares.

Stockholders' Equity

Stockholders' Equity represents the owners' claim after all liabilities have been deducted from total assets. It's also known as shareholders' equity or equity.

Par Value

A nominal or face value assigned to a share of stock by the company's charter, unrelated to the market value.