The Restatement and the Code Have Made the Traditional Test

question 51

True/False

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible in order to excuse a party from contractual duties.

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Definitions:

Price-Taker

A price-taker is a market participant that cannot influence the price of a good or service and must accept the prevailing market price.

Price-Maker

An entity, such as a firm, that has the ability to influence the price of goods or services it sells, typically due to lack of competition.

Perfect Competitor

A theoretical market structure where many firms sell identical products, with no single seller able to influence market prices, ensuring maximum efficiency.

Withholds Output

A strategy where a firm or supplier limits the supply of a product to increase demand or prices.