Fact Pattern 11-3 Sally Contracts with Tasty Pizza Company to Deliver

question 4

Multiple Choice

Fact Pattern 11-3 Sally contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 11-3.Sally and Tasty​ 

• A) ​may rescind their entire contract. 
• B) ​may rescind their contract to the extent that it is executory. 
• C) ​must perform their entire contract. 
• D) ​must perform the part of their contract that is executory.

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Definitions:

Relevant Decision

A decision-making process that involves choosing among various options based on their potential impact on key business outcomes.

Idle Capacity

The unused portion of a company's production or service capacity, where resources are available but not being fully utilized.

Minimum Acceptable Price

The lowest price at which a seller is willing to sell a product or service, often determined by costs, market conditions, and profitability goals.

Special Order

A one-time customer order often requiring a deviation from the standard product line or service offerings, potentially at a different pricing or cost structure.