In the Context of Performance,the Benefit of Divisibility of a Contract

question 12

Multiple Choice

In the context of performance,the benefit of divisibility of a contract is

• A) that it does not excuse a party's nonperformance because of impossibility of performance, which may reduce the amount of disputes.
• B) to view the duty to perform as a series of smaller contracts, which may reduce the amount of disputes.
• C) to view the duty to perform as optional.
• D) that it mitigates the harmful effects of rescission.
• E) that it completely eliminates the need for arbitration and other alternative dispute resolution techniques.

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Definitions:

Residual Claimant

An individual or entity entitled to make a claim on the residual value of an entity's assets after all liabilities have been paid in the event of a liquidation.

Equity/Shareholders

Refers to the ownership interest held by shareholders in a corporation, represented by the company's common and preferred stock.

Intrinsic Value

The perceived or calculated true value of an asset, stock, currency, or company based on fundamental analysis, independent of its market value.

Model Inputs

Model Inputs are data or assumptions used as the basis for calculating or predicting outcomes within a financial or mathematical model.