Peter and Donald disagree on the interpretation of a business contract. Peter believes Donald owes him $20,000 and Donald believes he owes nothing. Peter believes he (Peter) has a 60% chance of prevailing. The cost of litigating is $2,000 each. Donald is100% certain that he (Donald) will prevail. Which of the following statements are true?O This case will not settle because Peter and Donald have different expectations about who would win in court.O The case can settle with Donald paying Peter $9,000.O The case can settle with Donald paying Peter nothing.O The case can settle with Donald paying Peter $2,000.

This is a situation based question of contract law where both parties contradict each other.

Answered: hald disagree on the interpretation of…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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