Which of the Following Is True with Regard to Ending

question 103

Multiple Choice

Which of the following is true with regard to ending a contract by performance,agreement,frustration,or breach?

• A)If the court holds that a contract has been ended by frustration,the damages awarded by the court will be the same as if the contract was ended by a breach.
• B)A person who breaches a contract is liable for all loss that directly and naturally flows from the breach,no matter how unforeseeable.
• C)The victim of a breach can recover damages even for the loss he could have avoided if he had tried to.
• D)A victim of breach can only receive compensation in an amount that was reasonably foreseeable by the breaching party at the time they entered into the agreement.
• E)If a person owing money has tendered payment in a reasonable way,at a reasonable time,and it has been refused,he is free from any further obligation to pay.

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Definitions:

Planning Purposes

The intention behind actions or decisions aimed at forecasting future operations, setting goals, and determining the strategies and resources required to achieve them.

Future Profitability

The expected financial success or ability of a company to generate profit in future periods.

Accounts Receivable Aging

A report showing the unpaid invoices of a business, categorized by the length of time an invoice has been outstanding.

Financial Statements

Comprehensive reports created from accounting records that convey a business's financial performance, position, and cash flows over a specific period.