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Dizzel Inc

question 10

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Dizzel Inc.is a small-scale mining company that started its business in 2001.By the year 2008,the firm had to close its operations.The company had been continuously laying off its employees since 2006,which led to the further downsizing of the firm.The decline in the availability of minerals in its operating region since 2004 has contributed vastly to its downfall and also reduced the need to inject new capital since then.Which of the following factors of production has primarily caused the firm to end its operations?


Definitions:

Privity of Contract

The principle that a contract confers rights and imposes liabilities only on its parties; no outsider can gain rights or be liable under it.

Novation

The process of replacing an existing obligation with a new one, substituting a party or terms in a contract with the consent of all parties involved.

Rules of Interpretation

Guidelines and principles used to determine the meaning and intention of legal texts and statutory provisions.

Doctrine of Privity

A principle in contract law stating that contracts are binding only upon the parties signing the contract and no third party can enforce or be bound by the contract.

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