Corrie Contractually Agreed to Build a House for Ed in Exchange

question 34

Multiple Choice

Corrie contractually agreed to build a house for Ed in exchange for $250 000. After completing about 75 percent of the project, Corrie ran out of resources and informed Ed that she could not continue. She therefore abandoned the job, as well as a substantial amount of materials at the work site. After Corrie left, Ed used the abandoned materials to finish the job himself. Which of the following statements most likely is TRUE?

• A) Because Ed completed the job, Corrie is entitled to have the contract discharged on the basis of performance.
• B) Although she is not entitled to be paid for her services, Corrie is entitled to sue on the contract in order to be paid for the materials that Ed used to complete the project.
• C) If the court classifies the parties' agreement as an entire contract, then Ed is liable for the materials that he used in completing the project, but he is not liable for the work that Corrie performed.
• D) Corrie is entitled to partial payment on the basis of the doctrine of substantial performance.
• E) Because Corrie did not complete the project, the parties never actually had a contract.

Understand the difference between systematic and unsystematic risk and their implications for investment strategy.

Comprehend how managerial decisions can impact a firm's beta and overall risk profile.

Acknowledge the role of macroeconomic factors, such as inflation, on investment returns and the risk-free rate.

Grasp the importance of diversifying among various types of investments to protect against economic uncertainty.

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Definitions:

Aggressive Feelings

Emotions characterized by anger or hostility that may result in aggressive behavior towards others or oneself.

Displacement

In psychology, transferring an emotional response from the original source of stress to a safer or more convenient target.

One-Way Communication

A form of communication where information is transmitted from the sender to the receiver without expecting or receiving any response or feedback.

Distorted

Altered or misrepresented in a way that deviates from the true or correct original form, often leading to misinterpretation.