Which of the Following Mistakes Will Most Likely Render Impossible

question 25

Multiple Choice

Which of the following mistakes will most likely render impossible the purpose of the contract?

• A)buying a car,only to later find out that it was resold to you by some rogue who did not have title to the car
• B)both parties to the contract reasonably and innocently believing that the property sold to a business is zoned commercial but it is,in fact,zoned residential
• C)thinking that you ordered one copy of a software program when,in fact,you negligently ordered 10 copies
• D)buying a piece of art on the basis of its aesthetic appeal,only to later find out that it was painted by a famous artist and is worth more than you paid for it
• E)buying a home without inspecting it,and later finding out that the foundation requires replacement

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Definitions:

Total Cost

The full amount of expenses incurred for producing or acquiring a product or service.

Commission Charges

Fees paid to an agent or company for facilitating a transaction, often a percentage of the transaction value.

Proceeds

The amount that a seller receives from the buyer of a note being discounted; the difference between the maturity value and the discount amount. In a stock transaction, the proceeds received by the seller are equal to the selling price minus the commission.

Differential Rate

A variable rate that applies to a specific portion of a loan or deposit balance, often used to encourage higher balances with better rates.