Which of the Following Events Would Have the Best Chance

question 30

Multiple Choice

Which of the following events would have the best chance of excusing performance of a contract based on commercial impracticability?

• A)The price of a raw material increases slightly so that the contract will not be as profitable.
• B)An unforeseeable trade embargo causes prices to triple.
• C)The promisor of personal services dies.
• D)The subject matter of the contract is destroyed.

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Definitions:

Deductible

An expense that can be subtracted from gross income to reduce the amount of income subject to tax, often related to business expenses, healthcare costs, and certain individual deductions.

Itemized Deduction

Deductions from income that taxpayers can claim for specific expenses, as opposed to taking a standard deduction.

Home Equity Indebtedness

Debt secured by a qualified residence that exceeds the acquisition indebtedness, with interest on such debt often being deductible under U.S. tax law.

Acquisition Indebtedness

Debt incurred in acquiring, constructing, or substantially improving a qualified residence of the taxpayer, and secured by the residence.