Evan Owns a Business That Produces Various Forms of Marketing

question 23

Multiple Choice

Evan owns a business that produces various forms of marketing and promotional materials.Andrea entered into a contract with him.He was required to design a website for her business by June 1; she was required to pay $100 000 to him on July 1.Because of an administrative error, however, Evan confused Andrea's order with the order of another customer.Consequently, by June 1, he had printed 10 000 copies of a glossy magazine for another customer, but he had not even started work on Andrea's website.Although it is not yet July 1, Andrea has changed her mind and she no longer wants to pay $100 000 to Evan in exchange for a website.Which of the following statements is TRUE?

• A)Evan is entitled to discharge the contract because Andrea committed a breach of a contractual warranty that substantially deprived him of the expected benefit of the contract.
• B)Andrea is entitled to discharge the contract because Evan committed a breach of a contractual warranty that substantially deprived her of the expected benefit of the contract.
• C)Evan is entitled to discharge the contract because Andrea committed a breach of a contractual condition that substantially deprived him of the expected benefit of the contract.
• D)Andrea is entitled to discharge the contract because Evan committed a breach of a contractual condition that substantially deprived her of the expected benefit of the contract.
• E)Because Evan has not performed and because Andrea no longer wants his performance, the contract has been discharged by frustration.

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Definitions:

Adaptive Challenge

A problem or situation that cannot be solved with current knowledge or skills, requiring new learning, innovation, and approaches.

Clear Solution

A straightforward or easily understood method or answer for solving a problem or addressing a challenge.

Personal Values

Core beliefs or principles that guide an individual's behavior and decision-making.

Adaptive

Having the ability to adjust effectively to new conditions or to changes in the environment.