Fact Pattern 10-3

question 25

Multiple Choice

Fact Pattern 10-3
Sally contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 10-3. The next day, Sally changes her mind and again offers to deliver Tasty's products. Tasty is willing to deal, but for a new price. Sally and Tasty

• A) may agree to a new contract, but it cannot include a new price.
• B) may agree to a new contract that includes the new price.
• C) must perform their original contract.
• D) must perform the part of their original contract that is executory.

---

Definitions:

Money Market Instruments

Short-term debt instruments, usually with a maturity of less than one year, used for borrowing and lending in the money market.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations to finance their immediate operational needs, characterized by its low-risk and short maturity period.

Tax-exempt

Refers to income, transactions, or entities that are not subject to tax by government authorities.

Weighted Average

A mean calculated by giving values in a data set more influence according to some attribute of the data, such as frequency or importance.