S Contracted to Build a Machine for F for a Price

question 40

Multiple Choice

S contracted to build a machine for F for a price of $8800.00.F paid $1000.00 on account.When the machine was nearly completed,S refused to do more unless F paid another $3000.00.F sued to recover the $1000.00 and for other compensation,and S counterclaimed for the contract price.Expert evidence indicated that the machine was not substantially completed at the time of F's refusal to do more.In this situation at common law

• A)F will recover the full $8800.00 even though he defaulted in completing the machine.
• B)although the work is not yet completed,a quantum meruit claim can be asserted by S.
• C)the contract continues to exist.
• D)F's actions together with a failure to complete the machine cancelled the contract,so S will not succeed and must pay back the deposit of $1000.00.
• E)none of the above

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Definitions:

Expected Price

The price level that consumers, investors, or businesses predict or assume will prevail in the future based on current information.

Oral Auction

A traditional auction where bidders shout out their bid prices, and the highest visible bid at the end wins the item.

Bidders

Individuals or entities that offer a price for goods, services, or assets in an auction or competitive bid process.

Auction Information

Details and data related to items, bidding process, and rules of an auction, provided to potential participants.