Ben and Andrew Are Parties to a Contract

question 32

Multiple Choice

Ben and Andrew are parties to a contract.They agree on a novation.The novation does not require

• A)the existence of a previous,valid obligation.
• B)agreement by all the parties to a new contract.
• C)performance of the original contract by all of the parties.
• D)a new,valid contract.

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Definitions:

Taxable Income

The amount of an individual's or company's income that is subject to taxes, after all deductions and exemptions are applied.

Average Tax Rate

The percentage of total income paid in taxes, calculated by dividing the total tax paid by the taxpayer’s total income.

Tax Schedule

A chart or list that outlines the rates of taxation for different levels of income or types of taxpayers.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, demonstrating the percentage of tax applied to your income for each tax bracket in which you qualify.