Baker and Able Signed a Contract Which Required Able to Purchase

question 39

Multiple Choice

Baker and Able signed a contract which required Able to purchase 600 books from Baker at 90¢ per book.Subsequently,Able,in good faith,requested that the price of the books be reduced to 80¢.Under the circumstances,the oral agreement is:

• A) unenforceable,because Able failed to give consideration,but proof of it will be otherwise admissible into evidence.
• B) unenforceable,due to the statute of frauds,and proof of it will be inadmissible into evidence.
• C) enforceable,but it is not a valid agreement.
• D) enforceable,and proof of it will be admissible into evidence.

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Definitions:

Supervising Activity

An oversight function involving the monitoring and direction of resources, processes, or employees to achieve organizational objectives efficiently.

First Stage Allocations

The process of assigning indirect costs to different departments or cost centers within a business.

Equipment Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value due to use, wear and tear, or obsolescence.

Supervisory Expense

Costs associated with managerial or oversight activities within an organization, typically involving salaries and benefits of supervising staff.