In Which of the Following Situations Can a Party's Duty

question 23

Multiple Choice

In which of the following situations can a party's duty to perform be discharged?

• A)Statutes and legislation that make a performance more difficult.
• B)When something that is essential to the promisor's performance is destroyed through no fault of the promisor but its substitute is available.
• C)When events occur after the formation of the contract that would make the return performance of the other party worthless to the promisor.
• D)When the promisor impliedly assumed the risk that the event would occur.

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Definitions:

Compounded Semi-annually

A method of calculating interest where the interest is added to the principal twice a year.

Strip Bond

A type of bond investment where the coupon payments and the principal are separated and sold individually as zero-coupon instruments.

Yield Rate

The annual income return on an investment, expressed as a percentage of the investment's price.

Annual Compound Rates

The rate of return that is earned on an investment or paid on a loan when interest is compounded on an annual basis.