A Party to a Contract Who Seeks to Rescind the Contract

question 1

Multiple Choice

A party to a contract who seeks to rescind the contract because of that party's reliance on the unintentional but materially false statements of the other party will assert:

• A)reformation.
• B)actual fraud.
• C)misrepresentation.
• D)constructive fraud.

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Definitions:

MACRS

Modified Accelerated Cost Recovery System, a method of depreciation in the United States that allows businesses to recover investments in certain property through tax deductions over a specified life.

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life; often used in depreciation calculations.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or other declines in value.

Depreciable Rate

The rate at which an asset loses its value over time for accounting and tax purposes, determining its annual depreciation.