A Construction Contractor Entered into a Contract to Build a Family

question 114

Multiple Choice

A construction contractor entered into a contract to build a family room addition onto Harry's home for $25,000.In order to encourage timely performance,the agreement provided that the contractor would be penalized $5,000 as liquidated damages for each day that the project was late in getting finished.The contractor was 30 days late in finishing the project,but otherwise met the terms of the agreement.What is most likely in this situation?

• A) The liquidated damages clause would not be enforced due to its being excessive.
• B) The liquidated damages clause would be limited to $25,000, the amount of the contract price.
• C) The liquidated damages clause would be enforced.
• D) The liquidated damages clause would not be enforced because the parties made a mutual mistake about when the contract would be finished.
• E) The liquidated damages clause would be enforced only if it can be shown that the contractor has made that much in profits over the past six months.

Comprehend the differences between shared service units and centralized service units.

Explain the importance and structure of performance reports in responsibility accounting systems.

Understand the types of responsibility centers and their performance evaluation methods.

Familiarize with real-time information systems and their terminologies, including flash reporting.

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Definitions:

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions about oneself.

Objective Self-Appraisal

The evaluation of oneself through an unbiased, factual understanding of one's skills, qualities, and abilities.

Unconscious Dynamics

Psychological processes and motivations occurring outside of conscious awareness that influence behavior and emotions.

Personal Myth

An individual's collection of beliefs, stories, and values that form their personal identity and perception of the world.