Connie Enters into an Agreement with Razmin, a Local Artist

question 65

Multiple Choice

Connie enters into an agreement with Razmin, a local artist, to showcase a particular one of her sculptures at a prestigious art show. The day before the show, the gallery where the sculpture was being stored burns to the ground. Which of the following represents the most likely outcome?

• A) Razmin has breached the contract by failing to deliver the sculpture.
• B) Connie will still need to pay Razmin the same price agreed to in the contract, because the fire was not Razmin's fault.
• C) Razmin can simply provide a different sculpture to satisfy the contract.
• D) The contract is void.
• E) The contract has been discharged through frustration.

---

Definitions:

Cash Budget

A financial plan that estimates cash flows over a specified period, helping businesses manage their cash resources effectively.

General and Administrative Expense Budget

A financial plan that estimates the costs associated with the day-to-day operations of running a business excluding production costs.

Budget

An estimate of income and expenditure for a set period of time.

Master Budget

A comprehensive financial planning document that consolidates all of a company’s budgets for sales, production, overhead, administration, and others into one overall budget.