MrBuyer,the Plaintiff in the Action,was Attempting to Enforce a Contract

question 144

Multiple Choice

Mr.Buyer,the plaintiff in the action,was attempting to enforce a contract in which the defendant,Mr.Seller agreed to sell to buyer his property,Blackacre,for $100 000.Which of the following,by itself,would be sufficient to allow Mr.Seller to get out of the contract?

• A) The $100 000 was not enough, not fair.
• B) At the time of the contract, unknown to Mr. Buyer, Mr. Seller did not understand the quality and nature of this act because of mental incapacity.
• C) Mr. Buyer referred to essential terms in a letter sent to Mr. Seller.
• D) Although both parties agreed to this, there had not actually been any money paid on the contract, not even a deposit or a down payment.
• E) There was only a verbal agreement between Mr. Seller and Mr. Buyer.

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Definitions:

Product Margin

Product margin refers to the difference between the selling price of a product and the cost of goods sold, representing the profit made on each product sold.

Activity-Based Costing

A pricing approach that allocates overhead and indirect expenses to corresponding products and services according to the activities involved.

Time-Driven

A term that refers to processes or methodologies that are controlled or measured based on time, such as time-driven activity-based costing.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, providing more accurate costing information.