Corrie Contractually Agreed to Build a House for Ed in Exchange

question 46

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)Corrie is entitled to partial payment on the basis of the doctrine of substantial 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)Because Ed completed the job, Corrie is entitled to have the contract discharged on the basis of performance.
• D)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.
• E)Because Corrie did not complete the project, the parties never actually had a contract.

---

Definitions:

Credit Union

A member-owned financial cooperative that provides traditional banking services, often with more favorable terms.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Future Value

The estimated amount of money an investment is expected to be worth at the end of a specified period, accounting for interest or capital gains.

Compounded Semiannually

A method of calculating interest where the interest is added to the principal amount twice a year, leading to compound growth.