Grover Contracts to Sell Two Tracts of Land to Hank

question 42

Multiple Choice

Grover contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Grover is still willing to sell the land, but under these circumstances the deal would adversely affect Hank.
-Refer to Fact Pattern 13-2.The parties' belief about the adjacency of the property is

• A)a bilateral mistake.
• B)a fraudulent misrepresentation.
• C)a unilateral mistake.
• D)unconscionable.

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Definitions:

Direct Method

An approach to preparing the cash flow statement that involves reporting major classes of gross cash receipts and payments.

Operating Activities

Activities that relate directly to the primary business operations of a company, such as selling goods and services, which are reflected in the cash flow statement.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, usually on a quarterly basis, representing a portion of the corporate profits.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.