X and Y Have a Contract,which Obligated X to Sell

question 45

Multiple Choice

X and Y have a contract,which obligated X to sell Y 100 boxes of screws for $100.The parties orally modify the contract so that X will sell Y the same 100 boxes of screws for $125.The second agreement is:

• A)binding because it is due to unforeseeable situation.
• B)binding by virtue of being mutually agreed on.
• C)not binding because it is an outputs contract.
• D)not binding due to the promise of performing a preexisting legal obligation.

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Definitions:

Monopolistic Competitor

A monopolistic competitor refers to a market structure in which many companies sell products that are similar but not identical, allowing for significant differentiation and some degree of market power.

Product Differentiation

the process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Peak Efficiency

The highest level of performance or productivity that a system, device, or organization can achieve under ideal circumstances.

Price Discrimination

A pricing strategy where different prices are charged for the same product or service in different markets or to different segments of consumers based on demand, market conditions, or other factors.