Tile & Grout (T&G)contracts to Resurface the Insides of the Pools

question 49

Multiple Choice

Tile & Grout (T&G) contracts to resurface the insides of the pools at WaterWorld Park. T&G knows that without the resurfacing,WaterWorld will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages,WaterWorld can recover

• A)the cost of new pools.
• B)the difference between T&G's price and the eventual cost of resurfacing.
• C)the loss of profit from the delayed opening.
• D)nothing.

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Definitions:

Face Value

The nominal or original value printed on a financial instrument, such as a bond or stock certificate.

Notes Payable

Notes payable are written agreements where a borrower agrees to pay back the principal amount along with interest to a lender at a future date.

Accrued Interest

Accrued Interest is the interest that has accumulated on a bond or loan since the last interest payment date but has not yet been paid.

Liquidity

The measure of how quickly and easily an asset can be converted into cash without significant loss of value.