Which of the Following Statements Is True If Substantial Performance

question 98

Multiple Choice

Which of the following statements is true if substantial performance is proved?

• A) The plaintiff must pay the defendant as agreed to in the contract.
• B) The plaintiff cannot refuse to pay the defendant.
• C) The plaintiff is entitled to recover the original price that had been agreed upon before the defendant performed.
• D) The plaintiff is entitled to recover the new price found by taking the median between the plaintiff's demand for recovery and the defendant's claim of the amount of recovery.

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Definitions:

Acid-test Ratio

The acid-test ratio, also known as the quick ratio, measures a company's ability to pay its current liabilities without needing to sell inventory.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Current Liabilities

Current liabilities are financial obligations a company is due to pay within one year, including accounts payable, short-term debts, and other similar liabilities.

Proportion

A segment, piece, or amount looked at in relation to the entirety.