In the Case of Contracts That Are Impossible to Perform,the

question 27

Multiple Choice

In the case of contracts that are impossible to perform,the contract is:

• A) void and the parties are discharged.
• B) valid and must be performed.
• C) unenforceable but must be performed.
• D) referred to a court for performance.

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Definitions:

Cycle Inventory

The portion of inventory that is planned to be sold in a given cycle, as part of the regular pattern of ordering and selling goods.

Forward Buying

Purchasing inventory in larger quantities than immediately needed, often in anticipation of price increases or high demand periods.

Lot Size

The quantity of items that are produced, purchased, or moved in a single batch or order.

Cycle Inventory

Inventory that companies maintain to facilitate production in batches or cycles, as opposed to continuous production.