If a Law Is Passed After the Parties Enter into a Contract

question 39

Multiple Choice

If a law is passed after the parties enter into a contract that makes performance more costly, the contract is:

• A) enforceable
• B) void from the beginning.
• C) terminated by alteration.
• D) unenforceable.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level, allowing for more accurate cost control.

Monthly Sales

The total revenue generated from sales within a month, often tracked to assess business performance.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.

Sales Commissions

Fees paid to salespersons or agents based on the value or volume of sales achieved, typically expressed as a percentage.