Which of the Following Occurs When Parties Agree That They

question 32

Multiple Choice

Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and therefore rescind or cancel the contract?

• A) Accord and satisfaction
• B) Novation
• C) Substituted contract
• D) Mutual rescission
• E) Alteration

---

Definitions:

Total Revenue

The overall amount of money that a business receives from the sale of goods or services, calculated as the unit price times the quantity sold.

Additional Worker

An employee added to the workforce, often to address increased demand or enhance productivity.

Profit-Maximizing

The method or approach through which a company decides on the pricing and production quantity that yields the highest profit.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource or factor of production.