Mitch and Nadine Enter into a Contract for a Sale

question 9

Multiple Choice

Mitch and Nadine enter into a contract for a sale of seventy-six specially made motion detectors.When Nadine does not deliver within a reasonable time after the agreed delivery date,Mitch files a suit for breach.Nadine asserts the doctrine of commercial impracticability.This doctrine extends only to problems that are

• A)foreseen.
• B)preventable.
• C)unforeseen.
• D)ordinarily assumed by a seller or lessor.

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Definitions:

Constant Payment

A fixed amount of money paid periodically in a loan agreement until the loan is repaid in full, including both principal and interest.

Time Premium

The difference between intrinsic value and the option price.

Call Option

A financial contract that gives the purchaser the right, but not the obligation, to buy an asset at a predetermined price before or at the expiration date.

Put Option

A financial contract giving the option holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.