If a Buyer Becomes Concerned That the Seller May Not

question 5

Multiple Choice

If a buyer becomes concerned that the seller may not be able to perform required contract obligations, the buyer:

• A) can legally cancel the contract without telling the seller.
• B) can demand assurance from the seller that the contract will be performed.
• C) will be excused from fair trade under the test of commercial impracticability.
• D) will be excused from performance under the test of impossibility.

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Definitions:

State Tax Registration

The process by which a business or individual registers with a state authority to collect, report, and remit taxes as required by law.

Liability

Legal responsibility or obligation, especially for debts or damages.

Organizational Form

The structure or framework adopted by a business or entity that dictates its operational and governance approach, such as a corporation, partnership, or sole proprietorship.

Owners' Acts

Legal actions or decisions made by the owners of a property or business.