A Contract Is Discharged When a Change in the Law

question 4

True/False

A contract is discharged when a change in the law renders the performance illegal.

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Definitions:

Consolidating Entries

Journal entries made in the process of combining the financial statements of multiple subsidiaries with those of a parent company.

Original Cost

The acquisition cost of an asset before adjusting for depreciation, amortization, or impairment costs.

Book Value

The net value of a company's assets minus its liabilities, essentially the company's total equity.

Amortization

The gradual repayment or write-off of an asset over a specified period, typically used for loans, mortgages, or intangible assets.