Which of the Following Is True of Discharge of Performance

question 83

Multiple Choice

Which of the following is true of discharge of performance by agreement?

• A) A partially executed contract cannot be rescinded.
• B) Mutual rescission requires parties to enter into a second agreement that expressly terminates the first one.
• C) A party is allowed to rescind a contract without the consent of the other party.
• D) Unilateral rescission is not regarded as breach of contract.

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Definitions:

Acquisition Date

The exact date on which control of a business is obtained by the acquirer, upon which the acquirer applies acquisition accounting.

Non-controlling Interest

The portion of equity interest in a subsidiary not attributable to the parent company.

Retained Earnings

The portion of net profits not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Profit After Tax

The net income a company remains with after all taxes have been subtracted from its total revenue.