X Contracted with Z

question 153

Multiple Choice

X contracted with Z. X promised to pay $500 and Z promised to build a cabinet to hold X's fine china. The essential terms included the type and quality of the wood, the dimensions, and the date of completion-February 13. The work went more easily than expected and Z said to X, "If you pay me another $85, I will have this finished and be out of here by February 10." X agreed. If the cabinet was done to specifications by the 10th, but X refused to pay anything, Z would be entitled in law to

• A) nothing.
• B) $500.
• C) $585.
• D) only $85.
• E) a "fair price."

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Definitions:

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property.

Factory

A building or set of buildings where goods are manufactured or assembled chiefly by machine.

Raw Materials

The basic materials and substances used in the initial stages of production before undergoing processing.

T-account

A bookkeeping tool that visually represents a general ledger account, showing debits on the left side and credits on the right.