Why Was the Plaintiff Builder Successful in the Case of Pavey

question 39

Multiple Choice

Why was the plaintiff builder successful in the case of Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221?

• A)The work was completed with proper skill and on time.
• B)The defendant had repudiated the contract.
• C)The defendant had received a benefit from the builder's performance of the contract.
• D)The contract was entire and not divisible.

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Definitions:

Operating Income

Earnings from a company's principal business activity, excluding expenses and revenues from non-operational sources.

Operating Income

A measure of a company's earning power from ongoing operations, equal to revenues minus operating expenses, but before taxes and interest.

Margin Of Safety

Indicates the possible decrease in sales that may occur before an operating loss results.

Variable Costs

Costs that change in proportion to the level of activity or production volume.