Cut-Rate Construction Company (CCC) Begins Building a Restaurant for Diners

question 63

Multiple Choice

Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.
-Refer to Fact Pattern 11-3.If CCC offers,as a reason for the extra $100,000,that ordinary business expenses have increased,the agreement is

• A)enforceable as an accord and satisfaction.
• B)enforceable because of unforeseen difficulties.
• C)unenforceable as an illusory promise.
• D)unenforceable due to the preexisting duty rule.

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Definitions:

Consumer Purchases

Transactions in which individuals buy goods or services for personal use or consumption.

Elastic Demand

A market condition where the quantity demanded of a good or service significantly changes in response to changes in its price.

Price-Elasticity Coefficient

A calculation that assesses how a product's demand level shifts when its price varies.

Total Revenue

The total amount of money received by a company from sales of its products or services before any expenses are subtracted.