An Unforeseen Difficulty Arising After a Contract Is Made May

question 21

Multiple Choice

An unforeseen difficulty arising after a contract is made may be resolved by a(n) _____.

• A) composition agreement
• B) promissory estoppel with detrimental reliance
• C) needs contract
• D) accord and satisfaction
• E) reservation of rights

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its day-to-day operations.

Short-Term Debt

Financial obligations due within one year, used by companies for immediate financing needs.

Healthy Profitability

Healthy profitability indicates a robust and sustainable level of earnings for a business, suggesting it is well-positioned for growth and stability.

Mezzanine Capital

is a form of financing that is a mix between equity and debt, often taking the form of convertible debt or subordinate debt, used by companies for expansion.