B16.For mutual rescission of a contract, the parties must make a secondagreement that includes consideration.
PAGE:314TYPE:+NAT: AACSB AnalyticAICPA LegalB17.A novation revokes and discharges a prior contract.
PAGE:315TYPE:NNAT: AACSB AnalyticAICPA LegalB18.The formation of a substituted agreement that does not involve a thirdparty is a novation.
PAGE:315TYPE:=NAT: AACSB AnalyticAICPA LegalB19.Performance of an accord discharges an original contractual obligation.
PAGE:316TYPE:NNAT: AACSB AnalyticAICPA LegalB20.After a contract is made, a supervening event may make performanceimpossible and discharge the contract.
PAGE:316TYPE:NNAT: AACSB AnalyticAICPA LegalMULTIPLE CHOICE QUESTIONSB1.Yvon enters into a contract to manage the operations of Zack’s bank for oneyear, renewable for subsequent one-year terms. If this contract isdischarged like most contracts, it will be