The Effect of the Doctrine of Substantial Performance Is That

question 36

Multiple Choice

The effect of the doctrine of substantial performance is that

• A) where there is substantial performance a court will not entertain a suit for damages for breach of contract.
• B) the promisor who has substantially performed a contract is entitled to damages.
• C) where there is substantial performance, a court will entertain a suit for damages for breach of contract.
• D) a promisee cannot seize upon a trivial failure of performance to avoid his or her obligations under a contract.
• E) the promisee who has substantially performed a contract is entitled to damages.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of earning revenue from these resources elsewhere.

Explicit Costs

These are the direct, out-of-pocket payments made by businesses for operational expenses like wages, rent, and materials.

Monetary Outlay

The amount of money spent on a particular transaction or investment.

Implicit Costs

The opportunity costs that arise when a company uses internal resources without a direct payment.