The Doctrine of Frustration Applies If

question 29

Multiple Choice

The doctrine of frustration applies if

• A)after a contract is created, some unexpected event either makes it impossible for the parties to perform or radically undermines the purpose of their agreement.
• B)the defendant repeatedly refuses to perform despite being able to do so.
• C)the contracting parties are unable to reach an agreement and are forced to abandon negotiations.
• D)the parties attempted to create a contract in ignorance of some fact that would make it impossible for the parties to eventually perform.
• E)both parties agree to not perform the contract.

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Definitions:

Medical Insurance Deductions

Amounts subtracted from an employee's gross pay for health insurance premiums, often part of an employer-sponsored health plan.

Federal Unemployment Taxes

Taxes imposed on employers to fund unemployment benefits, administered at the federal level.

Payroll Tax Expense

Taxes that an employer is responsible for paying on behalf of its employees, which can include federal and state income taxes, Social Security, and Medicare taxes.

FICA Taxes Payable

The amount due for Federal Insurance Contributions Act taxes, which fund Social Security and Medicare, required to be paid by employers and employees.