Fact Pattern 12-A2 (Questions A8-A10 Apply)

question 27

Multiple Choice

Fact Pattern 12-A2 (Questions A8-A10 apply)
Cut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants,Inc.,but after two months demands an extra $100,000.Diners agrees to pay.
-Refer to Fact Pattern 12-A2.If CCC offers no reason for the extra $100,000,but says only that it will otherwise stop construction,the agreement is

• A)enforceable as an accord and satisfaction.
• B)enforceable because of unforeseen difficulties.
• C)unenforceable as an illusory promise.
• D)unenforceable due to the preexisting duty rule.

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Definitions:

Taxable Income

The portion of income that is subject to income tax after adjustments, deductions, and exemptions.

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