In Judging Whether or Not a Contract Has Been Breached,the

question 19

Multiple Choice

In judging whether or not a contract has been breached,the Uniform Commercial Code (UCC) applies the principle of "perfect tender." This means that

• A) there must be a cash exchange to enforce the contract.
• B) the UCC treats the matter the same as the CISG.
• C) the parties must refer to their oral agreements, not to what they have written.
• D) the goods and their delivery must exactly conform to what was written in the contract.
• E) None of the above

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Definitions:

Risk-Free Asset

An investment guaranteed to return the original investment without any loss, typically associated with high-grade government securities.

Indifference Curve

In economics, a curve that represents different combinations of goods or services among which a consumer is indifferent, showing preferences.

Risk-Free Asset

An investment that is expected to deliver its returns without any risk of financial loss, traditionally government bonds are considered close to risk-free.

Utility

The measure of the welfare or satisfaction of an investor.