Techstate, a Hardware Manufacturer in the United States, Has an Existing

question 59

Multiple Choice

Techstate, a hardware manufacturer in the United States, has an existing contract with a client based in the Republic of Karthasia, which is going through a domestic political crisis. The resulting upheaval in that country has led to some of the shipments to the client being destroyed by warring factions. As a sanction against the country, the United States government places an embargo on all exports to that country by U.S. firms. What will be the state of the contract between Techstate and the client in Karthasia after the embargo?

• A) It will be terminated due to destruction of subject matter.
• B) It will be terminated due to incompetency of the offeror.
• C) It will be terminated due to lapse of time.
• D) It will be terminated due to supervening illegality.

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Definitions:

Cash

A form of currency that includes coins and paper notes, used as a medium of exchange for goods and services.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Generating Sales

The process of creating revenue for a company through selling goods or services.

Fixed Assets

Durable, physical assets utilized in running a business, which are not foreseen to be cashed in or used up in the near term.