Which of the Following Situations Best Demonstrates the Concept of Self-Induced

question 46

Multiple Choice

Which of the following situations best demonstrates the concept of self-induced impossibility?

• A)Seven years ago,Alpha became contractually indebted to pay Beta $10 000.Since Beta has not yet taken any action against Alpha,Beta probably can no longer collect upon the debt.
• B)Alpha agreed to transfer a particular vehicle to Beta.The transfer was to occur on June 1.On May 15,however,Alpha transferred the same car to Gamma,who was entirely unaware of the contract between Alpha and Beta.
• C)On May 15,Alpha agreed to transfer a certain painting to Beta.The transfer was to occur on June 1.In fact,although neither party realized it when they created their agreement that painting had been destroyed by fire on May 1.
• D)On May 1,Alpha agreed to transfer a motorcycle to Beta.The transfer was to occur on June 1.On May 15,Alpha informed Beta that it intended to break the contract and keep the motorcycle for itself.
• E)Alpha was contractually obliged to pay $1000 to Beta,at Beta's place of business,on June 1.On June 1,Alpha went to Beta's place of business and tried to discharge the debt by giving ten $100 bills to Beta.Beta refused to take the money.Because Beta refused a proper tender,Alpha no longer is required to actively repeat its tender.

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Definitions:

Semiannually

Occurring twice a year, or every six months.

Bond Interest Expense

The cost incurred by an entity for borrowing funds through issuing bonds, payable to bondholders as interest.

Semiannual

Occurring twice a year; every six months.

Par Value

The face value of a bond or stock, as stated by the issuing company, which often bears no relation to its market value.