Which of the Following Statements Is TRUE

question 60

Multiple Choice

Which of the following statements is TRUE?

• A)Bankruptcy always relieves a contractual party from the need to satisfy any obligation that arose under a contract.
• B)The doctrine of frustration applies in favour of the innocent party if the other party to a contract intentionally makes it impossible to perform the contract.
• C)The lapse of time under a statute of limitation causes a contract to be wiped out altogether.
• D)The breach of an intermediate term sometimes allows the innocent party to discharge the contract.
• E)In contrast to the doctrine of promissory estoppel,there is no possibility of retraction and resumption of rights under the doctrine of waiver.

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Definitions:

Publicly Traded

A company whose shares are bought and sold on stock exchanges, allowing investors to own a part of the company.

Private Companies

Businesses whose ownership is private and shares are not traded on public stock exchanges.

Measurement Principles

Guidelines that dictate how the economic activities of a company are captured in its financial statements.

Historical Cost

The original monetary value of an asset, reflecting the purchase or production cost without adjustments for inflation or market value changes.