If a Law or Regulation Makes the Performance of a Contract

question 26

Multiple Choice

If a law or regulation makes the performance of a contract illegal, the contract is:

• A) unenforceable.
• B) terminated by alteration.
• C) void from the beginning.
• D) terminated by operation of law.

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Definitions:

Shares Outstanding

The total number of shares of stock that are owned by investors, including both public shareholders and company insiders.

Market Price

The existing rate at which a service or asset is traded within a marketplace.

Buy Back

A corporate action in which a company purchases its own shares from the marketplace, reducing the number of outstanding shares.

Treasury Stock

Shares of a company's own stock that it has reacquired and holds in its treasury rather than retiring them.