USWheat Sales,Inc

question 75

Multiple Choice

U.S.Wheat Sales,Inc.has a contract with Zambia to supply 1,000,000 bushels of wheat.Before shipment,the U.S.government put an embargo on the sale of wheat to Zambia.U.S.Wheat cannot ship.In a legal action:

• A) U.S. Wheat would be liable for breach of contract and have to pay damages.
• B) U.S. Wheat will have to get wheat from other sources and specifically perform.
• C) U.S. Wheat will be excused from performance because of the doctrine of impossibility of performance.
• D) None of the above is correct.

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Definitions:

Demand-Pull Inflation

A situation where prices rise because the demand for goods and services exceeds their supply in the economy.

Aggregate Demand

The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Aggregate Supply

The total supply of goods and services available to an economy from producers at a given overall price level and at a given time period.

Hyperinflation

An extremely high and typically accelerating inflation rate, causing a rapid erosion of currency's value.