Why Is It Important to Distinguish Between Unilateral and Mutual

question 58

Multiple Choice

Why is it important to distinguish between unilateral and mutual mistakes?

• A)Because it determines which contracts lack consideration.
• B)Because it determines how much may be awarded in damages under a contract.
• C)Because it determines whether punitive damages may be awarded.
• D)Because it determines which contracts are voidable.
• E)Because it determines which contracts are considered fraudulent.

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Definitions:

Consolidated Amount

The total sum resulting from the combination of various items, expenses, revenues, or financial statements.

Direct Approach

A method of presentation in cash flow statements where actual cash flow information from operating activities is presented directly.

Inventory

Materials and products that a business holds for the ultimate purpose of resale.

Investment Account

An account held at a financial institution or brokerage which is used for the buying of investments such as stocks, bonds, and mutual funds.