When a Party to a Contract Does Not Perform as Required

question 550

Multiple Choice

When a party to a contract does not perform as required, there is:

• A) a failure to perform
• B) a rescinding of the contract
• C) a breach of trust
• D) a failure of contract
• E) none of the other choices are correct

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Definitions:

Pro Rata

A Latin term that means "in proportion," often used to describe a method of allocating amounts or shares among participants according to their entitlement or contribution.

Chapter 11

A provision under the U.S. Bankruptcy Code that allows businesses to reorganize and restructure their debts while continuing operations.

Plan of Reorganization

A detailed proposal for restructuring a company's finances and operations, typically during bankruptcy proceedings.

Conversion

An unauthorized act that deprives an owner of their property, altering its use or possession without consent.