Which of the Following Is True of Discharge of Contracts

question 12

Multiple Choice

Which of the following is true of discharge of contracts?

• A) Both parties to a contract are discharged when they have completely performed their contractual duties.
• B) A contract created by mutual agreement between two parties cannot be discharged by mutual agreement.
• C) A party who has breached a contractual duty may be discharged from liability for breach if the other party brings suit within the statute of limitations.
• D) If a party consents to an alteration, he or she is discharged.

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Definitions:

Interest Rate

A financial obligation, calculated as a percentage of the principal, is imposed on borrowers by lenders for asset usage.

Transfer Payments

Financial payments made by the government to individuals without any expectation of goods or services being returned, such as welfare benefits.

Budget Deficit

The situation when a government's expenditures exceed its revenues within a specific budget period, leading to borrowing or use of saved reserves.

Interest Rate

The slice of a loan imposed as interest upon the borrower, usually articulated as an annual percentage of the loan still to be repaid.