Digital Storage,Inc

question 7

Multiple Choice

Digital Storage,Inc.,offers to sell provide cloud-computing services to Entrepreneur Enterprises,Inc.,but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Entrepreneur Enterprisesaccepts the written offer.
-Refer to Fact Pattern 14-1. Digital Storage'sbest defense against enforcement of the contract is that Entrepreneur Enterprisesknew

• A)a bilateral mistake supports the cancellation of a contract.
• B)a mistake of value supports the cancellation of a contract.
• C)a unilateral mistake supports the cancellation of a contract.
• D)the price was below the prices of comparable devices.

---

Definitions:

Annual Dividend

The total dividend payment a company makes to its shareholders in a year.

Compounded Monthly

A method of calculating interest in which the interest accrued in each month adds to the principal for the calculation of subsequent interest.

Effective Annual Rate

The interest rate that is annually compounded, taking into account the effects of compounding.

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.