Birinder Contractually Promised to Sell 10 000 Tons of Steel

question 19

True/False

Birinder contractually promised to sell 10 000 tons of steel to Maria.Because he honestly believed that he had a total of 25 000 tons of steel in stock,he sold 15 000 tons of steel to Boris under a separate contract.After doing so,however,he discovered that he originally had only 20 000 tons of steel in stock.Because he has only 5000 tons of steel remaining,and because he had acted honestly throughout,his contract with Maria is discharged on the basis of frustration.

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Definitions:

Interest Receipt

A document acknowledging receipt of interest income on investments or savings.

Long-Term Investments

Assets intended to be held for more than a year, such as bonds, stocks, or real estate, for generating revenue or appreciating in value.

Interest Income

Income earned from various types of investments that pay interest, such as bonds or savings accounts.

Trading Investments

Securities that are purchased by a firm primarily for the purpose of selling them in the near term to generate income.