Which of the Following Events Would Have the Best Chance

question 30

Multiple Choice

Which of the following events would have the best chance of excusing performance of a contract based on commercial impracticability?

• A)The price of a raw material increases slightly so that the contract will not be as profitable.
• B)An unforeseeable trade embargo causes prices to triple.
• C)The promisor of personal services dies.
• D)The subject matter of the contract is destroyed.

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Definitions:

Receivables

Money owed to a business by its customers for goods or services that have been delivered or sold but not yet paid for.

Unsecured

Refers to a loan or credit that is not backed by collateral, meaning the lender takes on more risk and relies on the borrower's creditworthiness.

Internal Audits

Evaluations conducted by a company's own staff to assess its systems, controls, and operations for efficiency, effectiveness, and compliance.

Major Investment Decisions

Critical financial choices made by businesses regarding large-scale expenditures on assets or projects expected to generate long-term benefits.