Explain the Distinction Between the Effects of a Mistake That

question 55

Essay

Explain the distinction between the effects of a mistake that prevents the creation of a contract and a mistake that renders the purpose or performance of a contract impossible.Provide an example of each.

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Definitions:

Return on Stocks

The earnings generated from investing in stocks, typically measured in terms of dividend payments and capital gains.

Return on Bonds

Return on bonds is the total income an investor receives from a bond, calculated as a percentage of the bond's purchase price, including interest payments and value appreciation.

Higher Risk

Refers to situations or investments that are more likely to result in loss or have a greater variability of returns.

Efficient Markets Hypothesis

The theory that asset prices reflect all publicly available information about the value of an asset.