Suppliers of Goods and Services Try to Eliminate Their Liability

question 63

Multiple Choice

Suppliers of goods and services try to eliminate their liability, and the courts have discouraged this by applying the principle that some failures are so significant that there is no performance of the contract. This concept is known as

• A) repudiation.
• B) exculpatory clause.
• C) fundamental breach.
• D) frustration.
• E) anticipatory breach.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the organization, allowing for more accurate budgeting and performance evaluation.

Volatile Demand

Demand for a product or service that experiences frequent, unpredictable changes often leading to challenges in inventory management and production planning.

Stable Demand

Describes a market condition where the demand for a particular product or service remains consistent over time.

Static Budget

A budget that does not change or adapt with variations in sales volume or business activity levels, typically set for a specific period.