A Party Will Be Able to Enforce a Quantum Meruit

question 42

Multiple Choice

A party will be able to enforce a quantum meruit payment for a partially performed a contract where:

• A)they have made no effort at all to perform their contractual obligations.
• B)their actual performance is completely different to what they were required to do under the contract.
• C)prior to the time for performance they clearly indicate that they will not be performing their obligations.
• D)they have partially completed stages of a divisible contract.

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Definitions:

Accrued Liabilities

Obligations that a company has incurred but not yet paid for, recognized in accounting to match expenses with the revenues they help to generate.

Indirect Method

A cash flow statement preparation approach that starts with net income and adjusts for non-cash transactions and changes in working capital.

Marketable Securities

Financial instruments that are easily convertible into cash and may include stocks, bonds, and Treasury bills.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments, as reported in a company's cash flow statement.