Fact Pattern 16-1 (Questions 7–8 Apply)

question 60

Multiple Choice

Fact Pattern 16-1 (Questions 7–8 apply)
Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development.

-Refer to Fact Pattern 16-1.If Desmond breaches the contract,Estelle's remedy would most likely be

• A)a certain ratio of the amount that Desmond has in liquid funds.
• B)a percentage of Desmond's unrealized profit.
• C)the difference between the land's contract and market prices.
• D)specific performance.

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Definitions:

Cumulative Voting

Cumulative Voting is a voting system that allows shareholders to allocate their votes in a flexible manner among one or more candidates during the election of a company's directors, enhancing minority shareholders' representation.

Growing Perpetuity

A constant stream of cash flows without end that is expected to rise indefinitely.

Cash Flows

The total amount of money being transferred into and out of a business, considered essential for assessing its financial health.