Which of the Following Statements Is TRUE

question 18

Multiple Choice

Which of the following statements is TRUE?

• A)A contract will be discharged on the basis of substantial performance only if the recipient of the incomplete performance agrees to accept monetary damages for the shortfall.
• B)A contract will be discharged on the basis of anticipatory breach only if the innocent party chooses to relieve the party in breach of the need to perform the contract and release the defaulting party from claims for damages.
• C)An option to terminate can only be exercised by one party if the other party has breached the contract.
• D)A true condition subsequent will prevent a contract from being created unless a certain event occurs.
• E)A contractual obligation is executory if it has been performed.

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Definitions:

Farm Products

Goods that are the result of agricultural activities, including crops, livestock, and the products derived from them.

Total Revenue Test

A method used to assess the impact of price changes on total revenue, analyzing if a product is elastic or inelastic in demand.

Elasticity

A measure of how much the demand or supply of a product changes in response to a change in price.

Total Revenue

The total amount of money a firm receives from the sale of its goods or services, calculated as the product of price and quantity sold.