Randy and Donald Were Property Developers,and Decided to Construct a Condominium

question 38

Multiple Choice

Randy and Donald were property developers,and decided to construct a condominium in a certain neighborhood.Jim,who owned a chain of restaurants,heard of this agreement,and opened a new restaurant in the same neighborhood even before the condominium construction began.However,the plan for the condominium was not approved by the state authorities,and the project was cancelled.Jim suffered losses as a result,but he had no rights in the contract because he was a(n) :

• A) material beneficiary.
• B) substantial beneficiary.
• C) incidental beneficiary.
• D) third-party beneficiary.

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Definitions:

International Trade

The exchange of goods, services, and capital across international borders, driven by comparative advantages and benefiting parties through increased choice and efficiency.

Autarky Price

The price of a good in a country under the condition of autarky, where the country does not engage in international trade.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to undertake one action over another.

Computer

An electronic device capable of performing calculations and tasks according to a set of instructions called programs.