Where One Party Refuses to Perform His or Her Contractual

question 157

Multiple Choice

Where one party refuses to perform his or her contractual obligations,what is the risk that the second party runs if he continues to press the first party to perform?

• A)The first party may expressly repudiate the contract and therefore not be liable for breach.
• B)The second party may receive more damages for which he or she can't recover compensation.
• C)The first party may continue to refuse to perform,and there is nothing the second party can do about that.
• D)The contract may be discharged by frustration.
• E)The first party may breach a condition subsequent.

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Definitions:

Cost Formula

An equation or method used to determine the total cost of producing goods or services, combining fixed costs, variable costs, and sometimes semi-variable costs.

Variable Selling Expenses

Costs that vary directly with the volume of sales, such as commissions and shipping fees.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue is available to cover fixed expenses and to contribute to profit.

Variable Administrative Expenses

Costs that vary in proportion to changes in an organization's activity level, such as sales commissions.