Joe and Jack Have a Written Contract Whereby Joe Agrees

question 68

Multiple Choice

Joe and Jack have a written contract whereby Joe agrees to sell Jack a plot of land for $100,000.Later,without terminating the first contract,the parties modify the deal so that Joe sells Jack the same plot of land for $125,000.The second agreement is not a contract because:

• A)the first contract was not terminated.
• B)there is no consideration for Jack's promise.
• C)Joe's promise is illusory.
• D)written contracts for the sale of land cannot be modified.

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Definitions:

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold to consumers.

Specific Process

A distinct method or sequence of steps designed to achieve a particular outcome in manufacturing or another operational environment.

Labor Costs

The total amount of money a business spends on employment, including wages, salaries, and benefits.

Materials

The raw substances or components used in the manufacturing or production of goods.