In Summers Group V

question 112

Multiple Choice

In Summers Group v. Tempe Mechanical, Summers (Rexel) sold electrical materials used in a construction project that went into bankruptcy. Litigation developed over where various claimants stood to collect. The appeals court held that:

• A) Summers had to pay all attorney fees related to the litigation as it filed its lien last
• B) Summers was the only lien holder to file properly, so stood first in line to collect
• C) Summers, as a materials supplier, stood in line to collect behind the electrical firm that actually performed the electrical work
• D) Summers was the last lien holder to file, so stood last in line of the lien holders, but stood in line to collect before unsecured creditors
• E) None of the other answers are correct

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Definitions:

Constructive Condition

Conditions inferred by law to enforce fairness in the performance of contractual obligations, even if not explicitly stated in the contract.

Breach Of Contract

A failure to perform any promise that forms all or part of a contract.

Condition Precedent

A condition that must be fulfilled before a contract becomes effective or before an obligation is required to be performed.

Injunction

A legal directive mandating that a person or organization either perform or halt a particular act.