Which of the Following Is Correct with Respect to the Code's

question 37

Multiple Choice

Which of the following is correct with respect to the Code's approach to impossibility of performance?

• A)A significant drop in demand for the goods will excuse the buyer's performance.
• B)Increased production costs will excuse performance by the seller.
• C)Performance will be excused when it is impractical as a result of one or more unforeseen supervening events that are more than mere hardship or increased cost of performance.
• D)All of the above are correct.

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Definitions:

Salomon v. Salomon

A foundational company law case from the UK, establishing the principle that a corporation has a separate legal personality, distinct from its shareholders.

Secured Creditor

A creditor that has a legal claim, or lien, on collateral that secures loan repayment.

Legal Entity

An organization or individual with legal rights and obligations, like a corporation or partnership.

Personal Guarantee

A guarantee of payment for another’s obligation.