When Parties to an Oral Contract Have Both Fully Performed

question 40

Multiple Choice

When parties to an oral contract have both fully performed their obligations under the contract,the parties are:

• A)allowed to rescind the contract.
• B)not allowed to rescind the contract.
• C)allowed to seek compensatory damages.
• D)not allowed to recover the value of performance.

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Definitions:

Replacement Cost

The cost to replace an asset with another of similar kind and quality at current prices, without deduction for depreciation.

Book Value Per Share

A financial measure that calculates the per share value of a company based on common shareholders' equity in the business.

Assets

Resources owned or controlled by a business, entity, or individual with the expectation that they will provide future economic benefit.

Liabilities

Financial obligations or debts that a company or individual owes, which can include loans, accounts payable, mortgages, and other amounts due to third parties.