In Which of the Following Situations Would the Contract Not

question 28

Multiple Choice

In which of the following situations would the contract not be discharged by agreement?

• A) Both parties agree to let a new person be substituted into the contract in place of one of the old parties.
• B) Both parties agree to call off the contract under which one paid the other $5,000 for work that has not yet been performed, but the other now promises to return the $5,000.
• C) Both parties to the contract agree to call it off before either one has performed.
• D) A condition subsequent that calls for termination of the contract has not been met.
• E) The two parties have reached "accord and satisfaction" with regard to terminating the contract.

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Definitions:

Percentage Calculation

The mathematical process of determining the percentage amount or rate of something.

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The process of determining the relative amount of something as a percentage, which involves multiplication by 100 and adding a percent sign.

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The mathematical process of finding a portion of a number relative to 100, often used to compare sizes of different quantities.

Graduated Commission

A graduated commission is a compensation structure where the rate of commission increases with the volume of sales achieved, incentivizing higher performance.