Julia and Mary Have a Contract That Is Still Executory

question 1

Multiple Choice

Julia and Mary have a contract that is still executory. They mutually agree to rescind their contract and at the same time make a new contract. If the new contract is contested in court and the court finds that there was a preexisting duty under the original contract,then the new contract

• A)will not be enforceable.
• B)will still be enforceable.
• C)will not require consideration from either side.
• D)will be legally sufficient.

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Definitions:

Union Wage

The standard wage rate established through collective bargaining by unions on behalf of their members.

Fiscal Policies

Fiscal policies are government spending and tax policies used to influence economic conditions, including aggregate demand, employment, and inflation.

Cyclical Unemployment

Cyclical unemployment is the result of downturns in the business cycle, rising during economic recessions and declining in periods of economic growth.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and time.