Which of the Following Events Excuses a Promisor from Performing

question 38

Multiple Choice

Which of the following events excuses a promisor from performing his or her contractual obligations?

• A) a riot
• B) a shortage of materials necessary for production of goods and/or provision of services called for under the contract
• C) an unanticipated increase in the cost of performance
• D) destruction of the subject matter through no fault of either party

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Definitions:

Fannie Mae

A government-sponsored enterprise (GSE) established to expand the secondary mortgage market by making mortgages more accessible to low- and middle-income borrowers.

Freddie Mac

A government-sponsored enterprise (GSE) focused on expanding the secondary mortgage market by buying loans from lenders, thereby providing liquidity, stability, and affordability in the housing market.

Secondary Mortgage Markets

Markets where lenders and investors buy and sell existing mortgages or mortgage-backed securities, providing liquidity and capital to the primary mortgage market.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.