Reference no: EM132183158
1. Which of the following is not an example of a parameter in a LP model?
a) The price a firm will charge next year for its product
b) The price a competitor charges for a similar product
c) The unit cost of raw materials
d) Cannot be determined
2. Thomson, a famous artist, enters into a contract with Nicolas to create a life-size portrait of Nicolas for $85,000. He promises to deliver it within a week from the date mentioned on the contract. Two days after the contract was signed, Thomson meets with a severe accident and becomes bedridden. With regard to the given scenario, what happens to the contract between Thomson and Nicolas?
Nicolas is still bound by the contract.
The contract is discharged by performance.
A novation occurs in the contract.
The contract gets discharged.
3. Katie enters a contract with Handy Contractors, Inc. to install new cabinets and counter tops in her kitchen. Handy Contractors agrees to do the installation work by October 19, in exchange for payment of $5000 from Katie. Katie inserts the phrase “time is of the essence” into the contract, because she is expecting company at the end of October. Which of the following is true with regard to this scenario?
Performance must be rendered within a reasonable time.
Specifying the date in a contract renders the contract quasi–contractual.
Performance on the exact date is deemed vital.
Specifying the date in a contract renders the contract unenforceable.