Fact Pattern 17-A2 (Questions A16-A19 Apply)

question 41

Multiple Choice

Fact Pattern 17-A2 (Questions A16-A19 apply)
Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples.
-Refer to Fact Pattern 17-A2.When bad weather destroys Eve's Garden's apple crop,the obliga?tion to deliver apples to Hill & Dale is

• A)breached.
• B)discharged.
• C)not affected.
• D)suspended.

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Definitions:

Labor-Hour Contract

A contract in which payment is made based on the number of hours worked, typically used for projects where the scope is not clearly defined.

Hourly Rate

The amount of money paid for each hour of work.

Incentive Fee Contract

A contract type that provides additional compensation to the contractor for exceeding performance targets.

Cost Reimbursable Contract

A contract where the buyer reimburses the contractor for all legitimate costs incurred plus an additional fee for profit.