After a Contract Is Made, a Supervening Event May Make

question 17

True/False

After a contract is made, a supervening event may make performance impossible and discharge the contract.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without having full control over it, typically implicated by ownership of 20% to 50% of voting shares.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by assets minus liabilities, often used to assess if a company's stock is under or overvalued.

Fair Value

The assessed financial value of an asset or liability, reflecting current market prices in an open and competitive environment.

Significant Influence

Significant Influence is the power to participate in the financial and operating policy decisions of an investee, but not control them, typically associated with ownership of 20% to 50% of voting shares.