Grover Contracts to Sell Two Tracts of Land to Hank

question 59

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.Because of the parties' belief about the adjacency of the property,their contract is

• A)unavoidable.
• B)unconscionable.
• C)unenforceable.
• D)voidable.

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Definitions:

Return on Assets

A profitability ratio indicating the efficiency with which a company uses its assets to generate net income, calculated by dividing net income by total assets.

Return on Equity

A financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how effectively equity supports operations and growth.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net income by the number of outstanding shares of its common stock.

Net Profit Margin Ratio

A profitability ratio calculated by dividing net income by net sales, showing how much profit a company makes for every dollar of its sales.