Which of the Following Statements Is TRUE

question 23

Multiple Choice

Which of the following statements is TRUE?

• A)The doctrine of frustration applies only if the circumstances have changed so that performance,as originally intended,has become impossible.
• B)Because of its effect upon the parties,bankruptcy always leads to frustration of a contract.
• C)The doctrine of waiver may apply in connection with a condition,but not a warranty or an innominate term.
• D)Bankruptcy always discharges a person from performing a contractual obligation.
• E)Limitation periods exist,in part,because it is undesirable for courts to rely upon evidence that is old and perhaps unreliable.

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Definitions:

Protective Rights

Rights designed to protect the interest of the party holding those rights without giving that party power over the entity to which those rights relate.

Shared Control

A situation in business where two or more parties have the rights to govern the financial and operating policies of an enterprise in a way that both have significant influence but not full control over it.

Relevant Activities

Actions or decisions that significantly affect an entity's returns, influencing financial performance and outcomes.

Potential Rights

Rights that currently do not exist but may be obtained in the future, providing the holder with the ability to influence control or decision-making.