Which of the Following Statements Is True About Discharge by Alteration

question 10

Multiple Choice

Which of the following statements is true about discharge by alteration?

• A) When a parties' agreement is represented by a written instrument, a material, intentional alteration of the instrument by one of the parties does not discharge the other party.
• B) When a party does not consent to an alteration or objects to it after learning of it, he or she is not discharged.
• C) Alterations by third parties without the knowledge or consent of either contracting party do not affect the parties' rights.
• D) Discharge by alteration involves statutorily establishing reasonable time within which a lawsuit must be brought.

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Definitions:

Opportunity Cost

The cost of missing out on the next best alternative when making a decision or choice.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Benefit

An advantage or profit gained from something.

Foregone Benefit

The lost potential gain from other alternatives when one alternative is chosen.