In Order for a Purchaser of Land to Avoid a Contract

question 30

Multiple Choice

In order for a purchaser of land to avoid a contract with the seller based on duress,it must be shown that the seller's improper threats:

• A) were due to his relationship with the purchaser.
• B) actually induced the purchaser to assent to the contract.
• C) were due to his position of dominance with the purchaser.
• D) influenced the purchaser to assent as there were no reasonable alternatives.

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Definitions:

Goodwill Method

An accounting approach for handling goodwill during a business combination, where goodwill is not amortized but tested annually for impairment.

Capital Balances

The amounts shown in a company’s books representing the capital owned by partners or shareholders.

Profit and Loss

A financial statement, also known as an income statement, that provides a summary of a company's revenues, expenses, and profits/losses over a given period of time.

Partnership

A formally established way of running a business by two or more participants who equally handle the administration and profit-sharing.