Fact Pattern 13-B1 (Questions B9-B10 Apply)

question 22

Multiple Choice

Fact Pattern 13-B1 (Questions B9-B10 apply)
Quik Downtown Delivery contracts with Rico's Tacos to deliver its products.Both parties change their minds,however,and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 13-B1.The next day,Quik again offers to deliver Rico's products.Rico's is willing to deal,but for a new price.Quik and Rico's

• A)may agree to a new contract,but it cannot include a new price.
• B)may agree to a new contract that includes the new price.
• C)must perform their original contract.
• D)must perform the part of their original contract that is executory.

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Definitions:

Compounding

Compounding refers to the process by which the value of an investment increases because the earnings on an investment, both capital gains, and interest, earn interest as time passes.

Compounded Monthly

A process where interest earned on an investment is calculated and added to the principal each month, thereby earning interest in subsequent months.

Opportunity Rate

The return of a foregone option when another investment is chosen, embodying the concept of opportunity cost.

Time-Value

The belief that possessing money today is more valuable than having the same sum later, due to its capability to accrue earnings.