Fact Pattern 11-1

question 19

Multiple Choice

Fact Pattern 11-1
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments.


-Refer to Fact Pattern 11-1.With respect to Mutual's duties,Neil's performance most likely

• A)discharges Mutual from the contract.
• B)has no effect on Mutual's performance.
• C)increases Mutual's duties under the contract.
• D)suspends Mutual's duty to perform.

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Definitions:

Presumed

Accepted as true or existing until proven otherwise; an assumption based on general experience.

Acceptance

In contract law, the act of agreeing to the terms of an offer, thereby creating a binding contract.

Auctioneer

A person authorized to conduct sales by auction, taking bids, and declaring goods sold.

Offeror

The party in a contract negotiation who proposes the terms of an agreement to another party.