Which of the Following Involves the Discharge of a Contract

question 7

Multiple Choice

Which of the following involves the discharge of a contract by operation of law?

• A) One of the parties becomes bankrupt.
• B) Each party discharges the obligation of the other to perform the contract.
• C) One of the parties fails to carry out their obligation completely, and the other party accepts this.
• D) Performance of the contract becomes impossible due to the occurrence of an unforeseen event.

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Definitions:

Trade

The exchange of goods or services between individuals, businesses, or countries.

Lower Opportunity Cost

The advantage of choosing an option that has a relatively smaller loss of potential gain from other alternatives.

Trade

The exchange of goods and services between people or entities, often involving the transfer of money.

Goods

Tangible products that satisfy human wants and provide utility, which people buy and use.