Which of the Following Is Used as a Basis for Discharge

question 51

Multiple Choice

Which of the following is used as a basis for discharge by operation of law when performance is still objectively possible but would be extraordinarily injurious or expensive to one party?

• A) Frustration of purpose
• B) Commercial impracticability
• C) Alteration of the contract
• D) Anticipatory repudiation
• E) None of these because there is no such concept.

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Definitions:

Net Operating Income

Income originating from a corporation's central business endeavors, excluding subtractions for interest and taxes.

Variable Component

A portion of a cost or expense that varies directly with changes in production volume, business activity, or other variables.

Least-Squares Regression

A statistical method used to determine a line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by the model.

Inspection Cost

Expenses associated with the activities necessary to ensure that products or services meet the required standards and specifications.