Assume a Buyer and Seller Execute a Contract in Which

question 64

Multiple Choice

Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer.With a simple delivery contract in which the seller is not a merchant,which party sustains a loss if,through no fault of either party,the couch is destroyed through fire prior to delivery?

• A)Loss is proportioned 25% to the buyer and 75% to the seller
• B)Loss is proportioned 50% to the buyer and 50% to the seller
• C)Loss is proportioned 75% to the buyer and 25% to the seller
• D)The buyer
• E)The seller

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Definitions:

Expenditure

The action of spending funds or the amount of money spent on goods, services, or other expenses.

Gross Domestic Product

The total market value of all finished goods and services produced within a country's borders in a given time period, reflecting the overall economic health.

GDP Deflator

An economic metric that converts the nominal Gross Domestic Product into Real GDP by adjusting for price level changes, representing the price inflation or deflation within an economy.

Inflation Rate

The annual rate at which the cost of goods and services in an economy rises, representing a general upward trend in prices over time.