Specific Performance May Be Available for the Breach of a Contract

question 31

Multiple Choice

Specific performance may be available for the breach of a contract to sell

• A)an original painting.
• B)20 shares of Walmart stock.
• C)a Nintendo Wii video game system.
• D)a 2007 Mustang in mint condition.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, also known as shareholders' equity.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.