Julia and Mary Have a Contract That Is Still Executory

question 1

Multiple Choice

Julia and Mary have a contract that is still executory. They mutually agree to rescind their contract and at the same time make a new contract. If the new contract is contested in court and the court finds that there was a preexisting duty under the original contract,then the new contract

• A)will not be enforceable.
• B)will still be enforceable.
• C)will not require consideration from either side.
• D)will be legally sufficient.

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Definitions:

Marginal Revenue

The income boost obtained through the sale of one extra unit of a product or service.

Pure Competition

A market structure characterized by an extremely high level of competition, where no single buyer or seller can influence the market price.

Advertising

The activity or profession of producing advertisements for commercial products or services to influence consumer behavior.

Purely Competitive Industry

An industry structure where many firms offer a standardized product, entry and exit are easy, and no single supplier controls the market price.