Dagney Was an Author of a Popular Series of Children's

question 145

Multiple Choice

Dagney was an author of a popular series of children's books. She signed an agreement with her publisher, in which she agreed to have a new book in the series written by October 15th. As noted in the contract, the timing was critical to ensuring the books would be on the shelves before Christmas and in order to coincide with a massive promotion the publisher had been planning. Faran had a terrible case of writer's block. By October 3rd, she realized that there was no way that she would have the book finished by the deadline. She e-mailed her publisher, admitting that she would not have the book finished in time. What are the publisher's options?

• A) The publisher has the right to demand performance or sue.
• B) The publisher cannot take any steps until October 15th, assuming Dagney does not deliver.
• C) The publisher has no recourse, because Dagney's case of writer's block has made performance impossible.
• D) The contract is voidable at the option of the publisher.
• E) The date set out in the contract is not an enforceable term; if Dagney gets the manuscript to the publisher in a reasonable time, she will not be in breach.

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Definitions:

Transaction Costs

Expenses incurred during the process of buying or selling a product or service, typically including taxes, communication charges, and other financial fees.

Transaction Costs

Expenses incurred when buying or selling goods and services, which may include search and information costs, bargaining costs, and enforcement costs.

Voluntary Exchange

A transaction where parties involved trade goods or services by mutual agreement, without coercion.

Mutual Gain

A situation or outcome in which all parties involved benefit or profit from the arrangement or transaction.