Corrie Contractually Agreed to Build a House for Ed in Exchange

question 25

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.

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Definitions:

Total Revenue

The overall amount of money generated by a business from selling its goods or services, without subtracting any costs.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price, indicating how changes in price affect consumer demand or supply levels.

Linear Demand Curve

Represents a straight-line graph which shows the inverse relationship between the price of an item and the quantity demanded, assuming other factors remain constant.

Price Elasticity

An assessment of the responsiveness of the quantity demanded to price changes of a good.