Onar Development Stopped Progress Payments to Its General Contractor, Shape

question 54

Multiple Choice

Onar Development stopped progress payments to its general contractor, Shape Construction. Upon the advice of their attorney, Shape decided to sue for rescission of the contract rather than collect damages for breach. Shape will most likely

• A) file for bankruptcy.
• B) get expectation damages.
• C) get an injunction.
• D) collect under quantum meruit.
• E) ask for specific performance.

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Definitions:

Attractiveness

The quality that makes something appealing or desirable.

Production Function

An equation that specifies the output that a firm can produce with various combinations of inputs, reflecting the relationship between input and output quantities.

Service Firms

Businesses that primarily offer intangible products, such as services or expertise, to their customers.