Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Question
Chapter 4, Problem 11CYBK
To determine
Concept introduction:
Breach of contract:
Breach of contract is a legal term used in contract law. Breach of contract refers to the situation when any party of the contract fails to fulfill his part of the obligation as decided in the contract.
To choose: The correct option.
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Students have asked these similar questions
which of the following is true?
a.When what is to be delivered is a generic thing, the creditor may ask a person other than the debtor to perform the obligation.
b.Dolo incidente relates to the fraud committed at the time of the perfection of a contract.
c.When negligence is imputed as a cause for the breach in an obligation, the same is presumed.
The following are grounds for liability to pay damages, except:
a. Negligence
b. Fraud
c. Contravention of the tenor of the obligation
d. Advance
TRUE or FALSE
1. Statute of Fraud requires that certain executed contracts must be reduced into writing to prevent the commission of fraud.
2. Annulment of the contract is the proper remedy if the contract does not reflect the real intention of the parties and the element of the consent is already present.
3. Automatic transfer of ownership from the creditor to the debtor which is prohibited by law is also known as pactum commissorium.
4. Stipulation pour autrui applies only to executory contracts.
5. Mutual promise to marry which was reduced into writing is enforceable.
6. As a rule, a contract entered into by a guardian on behalf of a minor is rescissible.
Chapter 4 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 4 - Prob. 1CYBKCh. 4 - Prob. 2CYBKCh. 4 - Prob. 3CYBKCh. 4 - Prob. 4CYBKCh. 4 - Prob. 5CYBKCh. 4 - Prob. 6CYBKCh. 4 - Prob. 7CYBKCh. 4 - Prob. 8CYBKCh. 4 - Prob. 9CYBKCh. 4 - Prob. 10CYBK
Ch. 4 - Prob. 11CYBKCh. 4 - Prob. 12CYBKCh. 4 - Prob. 1RQSCCh. 4 - Prob. 2RQSCCh. 4 - Prob. 3RQSCCh. 4 - Prob. 4RQSCCh. 4 - Prob. 5RQSCCh. 4 - Prob. 6RQSCCh. 4 - Refer to the Focus on Fraud feature “Moss Adams...Ch. 4 - Prob. 8RQSCCh. 4 - Prob. 9RQSCCh. 4 - Prob. 10RQSCCh. 4 - Prob. 11RQSCCh. 4 - Prob. 12RQSCCh. 4 - Prob. 13RQSCCh. 4 - Prob. 14RQSCCh. 4 - Prob. 15RQSCCh. 4 - Prob. 16RQSCCh. 4 - Prob. 17RQSCCh. 4 - Prob. 18RQSCCh. 4 - Prob. 19RQSCCh. 4 - Prob. 20RQSCCh. 4 - Prob. 21RQSCCh. 4 - Able Corporation decided to make a public offering...Ch. 4 - KPMG (LO 1, 2, 3) KPMG LLP served as the external...Ch. 4 - ToshIba, EY (LO 1, 2, 3) In 2015, the business...
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- Explain the role of Anticipatory Breach of Contract in non-performance of contract. Briefly state and analyze the provisions of Contract Act dealing with Anticipatory Breach of Contract. Support your answer with suitable case study/ case scenario.arrow_forwardWhich of the following is NOT a valid type of compensation for breach of contract?Select one:a. Expectation Lossb. Liquidated Lossesc. Disappointment, Distress and Discomfortd. Specific Performancearrow_forwardThe duty owed under the mitigation of damages doctrine depends on the nature of the breached contract.arrow_forward
- subject accounting :- QUESTION 1 With reference to statutory provisions and decided cases, define "consideration" and explain THREE (3) types of consideration. QUESTION 2 An agreement is voidable if there is misrepresentation or fraud which induces the innocent party to enter into the agreement. With reference to statutory provisions and decided cases, explain the above statement.arrow_forwardWhich type of agent is not liable for a breach of contract by his principal: a. undisclosed agent b. partially disclosed agent c. fully disclosed agent d. all of the abovearrow_forwardWhich of the following mistakes that does NOT render an agreement defective? A) identity of the party or parties B) identity of the subject matter C) terms of the contract D) existence of the subject matterarrow_forward
- If either party fails to perform their contractual obligations according to the contract terms, it will usually result in a breach of contract. The scope and nature of an auditor's contractual obligation to a client ordinarily is established in the: Select one: a. Corporations Act 2001. b. Management letter. c. Client’s constitution. d. Engagement letter.arrow_forwardFactual errors can occur in two ways: unilaterally or bilaterally. What are the implications of both in terms of a contract? 2. Can a contract be void if a value or quality error is made? Why do you think it is?arrow_forwardWhich of the following statements is incorrect? O a. If the occurrence of the obligation is in doubt, there is no need to account for the liability. O b. A liability is a present obligation, arising from past transaction, which probably has to be paid. O c. Damages awarded by court against the business may be ignored because it will be appealed. O d. A liability has to be accounted for at the best reliable estimate even if the amount is not certain.arrow_forward
- Which of the following statements is false?a. A contingent liability should be disclosed in the notes to the financial statements if thereis a reasonable possibility that a loss (or expense) will occur.b. All contingent liabilities should be reported as liabilities on the financial statements,even those that are unlikely to occur.c. A contingent liability is a potential obligation that depends on the future outcome of pastevents.d. A contingent liability should be accrued if the loss is probable and the amount of theloss can be reasonably estimated.arrow_forwardThe proper remedy for the following cases is reformation of the instrument, except for one. Which is it? * If the true intention of the contracting parties is not expressed in the instrument purporting to embody the agreement by reason of mistake, fraud, inequitable conduct or accident. If the mutual mistake of the parties causes the failure of the instrument to disclose their real agreement. If mistake, fraud, inequitable conduct or accident has prevented the meeting of the minds of the contracting parties. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention.arrow_forward
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