Which of the Following Is True with Regard to Ending

question 106

Multiple Choice

Which of the following is true with regard to ending a contract by agreement?

• A) A contract cannot be ended by the happening of a "condition subsequent" provided for in the contract.
• B) A contract can be ended by one party if he finds a better deal, e.g., by cancelling an order that has been accepted, as long as this is done before performance.
• C) A contract cannot be ended by agreement if neither party to the contract has performed his or her obligation.
• D) A contract can be ended by agreement if one party has performed his obligation and agrees to take something as satisfaction from the other although that other hasn't performed according to the contract.
• E) A contract can be ended unilaterally by one party.

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Definitions:

Inventory Destroyed

This term describes inventory items that have been lost, damaged beyond repair, or otherwise rendered unusable and must be written off from the business's accounts.

Retail Inventory Method

An accounting technique used by retailers to estimate inventory levels based on the cost to retail price ratio.

Net Markups

Net Markups refer to the increase in the selling price of goods beyond their purchase price, net of any discounts or allowances.

Cost-to-Retail Ratio

A method used in retail to convert the cost of goods available for sale into the retail price.